Guide

Liquidation Calculator Guide: Step-by-Step for Crypto Futures

Calculating your liquidation price correctly is critical for protecting your positions in crypto futures. This guide explains how to use a liquidation calculator with real trade examples.

What is a Liquidation Calculator?

A liquidation calculator determines at what price your position will be forcibly closed based on your entry price, leverage, and position direction. This information is essential for setting stop losses and building your risk management strategy.

How to Calculate Liquidation Price

Enter Entry Price

Input the price at which you opened your position.

Select Leverage

Choose your leverage level: 5x, 10x, 25x, etc.

Set Position Direction

Select whether you are Long or Short.

Calculate

The calculator automatically shows your liquidation price.

Real Example: BTC Long Position

Entry Price$45,000

Leverage10x

PositionLong

Liquidation Price$40,950

In this example, if BTC falls below $40,950, your position will be liquidated.

Liquidation Calculation Tips

✓Always set stop loss before the liquidation price
✓Higher leverage = closer liquidation price
✓If using cross margin, your entire balance is at risk
✓High funding rates can erode your margin

Bybit vs Binance Liquidation Differences

Each exchange has slightly different maintenance margin rates. Bybit typically uses 0.5% MMR, Binance is similar. Always verify with the exchange's own calculator.

Liquidation Price Formula

For isolated margin long positions, the liquidation price is calculated as: Liq Price = Entry Price × (1 - 1/Leverage + MMR). For short positions: Liq Price = Entry Price × (1 + 1/Leverage - MMR). MMR (Maintenance Margin Rate) is typically 0.5% for most exchanges. Understanding this formula helps you predict exactly how much room you have before liquidation.

Building a safety buffer

Professional traders never let price get close to liquidation. A good rule is to keep at least 2x the distance between your stop loss and liquidation price. This buffer protects against slippage, sudden wicks, and exchange lag during volatile periods. If your stop is at $42,000 and liquidation at $40,950, you have adequate buffer. If they are close together, reduce leverage.

Calculate Your Liquidation Price

Liquidation Calculator FAQ

How accurate is the liquidation price calculator?▼

Our calculator provides an estimate based on the standard isolated margin formula. Actual liquidation prices may vary slightly depending on the exchange's risk engine, maintenance margin tiers, and accumulated funding fees. Always verify with your exchange.

Does leverage directly determine the liquidation price?▼

Yes. Higher leverage means less margin relative to position size, which brings the liquidation price closer to your entry. For example, at 10x leverage a ~9% adverse move triggers liquidation, while at 100x it only takes ~0.9%.

What is the difference between isolated and cross margin liquidation?▼

In isolated margin, only the margin allocated to that specific position is at risk. In cross margin, your entire account balance serves as margin, giving more room before liquidation but putting all funds at risk.

Should my stop loss be before or after the liquidation price?▼

Always set your stop loss BEFORE the liquidation price. Your stop loss should trigger well before liquidation to protect your capital. If your desired stop loss is beyond the liquidation price, reduce your leverage.

Methodology & Trust

Methodology

Calculations follow standard position sizing: risk amount / stop distance, adjusted for leverage and taker fees. Results are based on your inputs and are for educational purposes only.

Primary Sources

Liquidation and margin rules vary by exchange; always verify the latest terms on official documentation.

Articles are written by active traders and reviewed for clarity. The last updated date appears at the top of each article.

This content is not financial advice.