Isolated margin scenario · Reviewed 2026-11-03
Perpetual liquidation price scenario calculator
Estimate a simplified liquidation price for a linear perpetual position from entry price, notional, leverage, added margin, and a user-entered maintenance margin rate.
Explore an isolated, linear perpetual position using the assumptions you enter. This is a simplified scenario, not an exchange quote or a trading recommendation.
Enter all assumptions and calculate.
Use a maintenance margin rate that matches the position tier only if you have verified it with your venue. This model assumes a constant rate and does not apply a maintenance amount or tier changes.
Method and assumptions
Estimated quantity = entry notional ÷ entry price. Starting isolated margin = entry notional ÷ leverage + added margin. The calculator solves for the price where estimated position equity equals the maintenance margin rate multiplied by position notional at that price:
- Long: (entry price − starting margin ÷ quantity) ÷ (1 − maintenance rate)
- Short: (entry price + starting margin ÷ quantity) ÷ (1 + maintenance rate)
This is a linear, single-position model. It omits fees, funding, maintenance amount offsets, changing risk tiers, mark/index price basis, other positions, cross collateral, open orders, and venue-specific liquidation rules. A real liquidation threshold can differ substantially.
Sources
- Binance: How to Calculate Liquidation Price of USDⓈ-M Futures Contracts
- Binance: Futures Liquidation Protocols
Sources reviewed 2026-11-03. Binance describes liquidation using mark price and position maintenance requirements; this page provides a user-input scenario and does not reproduce Binance’s formula or current margin tiers.
How it works
Enter the assumed entry price, position notional, leverage, any additional isolated margin, and an estimated maintenance margin rate. Choose long or short to calculate a simplified scenario.
Good to know
How does this estimate work?
The calculator models an isolated linear position. It derives quantity as notional divided by entry price, sets starting margin to notional divided by leverage plus added margin, and solves for the price where position equity equals a constant maintenance margin rate times position notional. The maintenance rate is your input, not a live exchange tier.
Is this the liquidation price shown by an exchange?
No. Exchanges may use mark price, maintenance tiers and amounts, liquidation fees, funding, other positions, collateral, open orders, and account-specific margin rules. Cross margin and portfolio margin cannot be represented by this single-position model. Check the current contract rules and position panel at your venue.
What price triggers liquidation on Binance USDⓈ-M futures?
Binance says liquidation is triggered when the Mark Price reaches a position's liquidation price. Its published explanation also describes a risk engine and maintenance-margin effects; this calculator does not reproduce the exchange calculation.
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