Liquidation Price Calculator

How to Use the Liquidation Price Calculator

The liquidation price calculator estimates the price level at which your position would be closed, assuming isolated margin. You fill in four fields and see the result right away.

• Entry price – the price at which you opened the position (default $50,000).
• Leverage – the multiplier you are using (default 10×).
• Maintenance margin – the rate required to keep the position open (default 0.5%).
• Position direction – long (buy) or short (sell).

The results you get:

• Liquidation price – an estimate for isolated margin.
• Distance from entry price – how far the liquidation threshold is from your entry price, in percent.
• Initial margin – what part of the position value must be posted as collateral.

Example with the default values: entry price $50,000, leverage 10×, maintenance margin 0.5%, direction long. The liquidation price is $45,250.00, the distance from entry price is −9.5%, and the initial margin is 10% of position value.

If the maintenance margin is equal to or higher than the initial margin, you will only see a message that the position would be liquidated immediately. Initial margin is 1 divided by leverage, so at 10× it is 10%.

How to Choose Leverage and Maintenance Margin

Leverage and maintenance margin move the liquidation threshold the most, so it is worth setting them deliberately.

• Leverage increases the position value relative to the collateral you post. The higher it is, the closer the liquidation threshold sits to your entry price, and the smaller the initial margin.
• Maintenance margin is the buffer that must remain in the account. Usually, the higher the leverage, the higher the rate required by the platform.

At 10× leverage, the initial margin is 10% of position value. Lowering leverage raises the initial margin but moves the liquidation threshold farther from the entry price. Raising leverage does the opposite—the threshold moves closer to the entry price.

Check the maintenance margin in your broker's or exchange's fee schedule, because rates vary by market and position size. Enter the current value in the calculator, and the result will change immediately. Also remember that leverage increases both profit and loss relative to the capital you post—match it to how much you are willing to lose.

Liquidation Price Formula for Long and Short

The calculator measures how far the liquidation threshold is from the entry price and uses that to determine the price.

The same calculation step by step for the default values—entry price $50,000, leverage 10×, maintenance margin 0.5%, and direction long:

1. Initial margin: 1 ÷ 10 = 0.1, or 10% of position value.
2. Maintenance margin as a decimal: 0.5% = 0.005.
3. Long factor: 1 − 0.1 + 0.005 = 0.905.
4. Liquidation price: $50,000 × 0.905 = $45,250.00.
5. Distance from entry price: $45,250.00 ÷ $50,000 − 1 = −0.095, or −9.5%.

For a short, the factor adds the part that comes from leverage and subtracts the maintenance margin, so the liquidation price is above the entry price. The distance is then calculated as a positive value because it shows how much the price would need to rise.

Isolated vs Cross Margin and Risk Management

The calculator result is an estimate for isolated margin. In this mode, you assign a specific part of your funds to the position, and the loss cannot go beyond that collateral. The liquidation threshold then depends only on the parameters of that one position.

In cross margin mode, the collateral is your entire available account balance. The liquidation price is then not one specific number—it changes with your balance and other open positions. Treat the calculator result as a reference point for a situation where you assign a predetermined amount of funds to one position.

• Set a maximum loss per position and size the entry to match it, not the other way around.
• At high leverage, the distance to liquidation can be small—even a move of a few percent can bring you closer to the threshold.
• Write down the liquidation threshold before you enter a position so you know where your plan ends.
• If you add funds to a position, remember that changing the collateral affects the real threshold.

Tool Limitations and What It Does Not Include: Fees, Funding, Margin Tiers

The calculator gives an estimate for the numbers you enter. It is an approximate value that you should compare with the actual conditions in your account.

• Fees and commissions — opening and closing costs, commissions, and borrowing costs are not included in the calculation.
• Funding — in perpetual contract markets, the funding fee paid periodically changes your balance and therefore affects the real liquidation threshold.
• Margin tiers — the required maintenance margin often rises with position value. The calculator uses one rate that you enter yourself.
• Current prices and fee schedules — the tool does not pull data from the market or an exchange; all values come from your input.
• Individual terms — promotions, discounts, and the details of your broker agreement may produce a different result than this estimate.
• Market events — sudden price gaps and order slippage can cause the actual close to occur at a different price than the calculated threshold.
• Taxes — the tool does not calculate tax liabilities or the settlement of your result.

The result is especially approximate at high leverage, when the maintenance margin changes with position size, when you hold several positions at once, or when there are large, fast market moves. In those situations, check your platform's current fee schedule and terms, and treat the result as a starting point for your own analysis.

Frequently Asked Questions

The result is an approximate estimate; the actual liquidation price depends on your exchange's rules and fees, so check your platform's current fee schedule and terms.