Liquidation Price Calculator
Results
Formula: For longs — Liquidation Price = Entry × (1 − 1/Leverage + MMR). For shorts — Liquidation Price = Entry × (1 + 1/Leverage − MMR). Where MMR is the maintenance margin rate. Actual liquidation may differ slightly due to funding accrual, fees, and tiered margin structures. Verify on your exchange before trading.
How to Interpret Results
- Liquidation price: The mark price at which your exchange will begin the liquidation process. For longs, this is below entry; for shorts, above entry. The further it is from current price, the safer your position.
- Distance from entry: The percentage price move required to reach liquidation from your entry price. At 10× leverage, a 9.5% adverse move reaches the liquidation zone (with 0.5% maintenance margin). At 50× leverage, less than 2% does.
- Initial margin rate: The fraction of the position value you must post as margin (1 / leverage). At 10× leverage, you post 10% of notional as initial margin.
- Maintenance margin buffer: The gap between your initial margin and maintenance margin as a percentage of notional. This is how much of your initial margin can be consumed before liquidation triggers. It equals approximately (1/leverage − maintenance margin rate).
Set a stop-loss well before the liquidation price — at a level that invalidates your trade thesis. Letting a position reach the liquidation price means forfeiting the entire margin to the exchange's liquidation engine, which is a worse outcome than a voluntary exit at a stop-loss level with partial loss recovery.
For deeper background on liquidation mechanics, the insurance fund, and auto-deleveraging, see Mark Price and Liquidation Mechanics.
Disclaimer
This calculator is for educational and informational purposes only. It does not constitute financial or trading advice. The formula used is a simplified isolated-margin approximation; actual liquidation prices vary by exchange due to tiered margin structures, fee deduction from margin, and funding accrual. Always verify liquidation price on your specific exchange before opening a position.