How it works
This is an educational isolated-margin approximation, not the exact liquidation price shown by an exchange. Cross margin, portfolio margin, added margin, liquidation fees and maintenance tiers are not modeled.
The formula
Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.
Long at $100 with 10x leverage and 0.5% maintenance margin produces a simplified $90.50 estimate, 9.5% below entry.
Calculation method
Leverage changes the initial-margin fraction of entry notional. The approximation moves the boundary toward entry as that margin cushion shrinks. Maintenance margin must be smaller than the initial-margin fraction for a meaningful adverse-distance estimate.
Interpretation
Exchanges may use mark prices, tier deductions and fee reserves. Check the platform’s own displayed liquidation level and contract rules. This tool does not identify a safe leverage or guarantee that a stop will execute before liquidation.
Method and reference sources
Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.
- CME Group — Calculating futures profit or lossContract size and price-movement context; verify your broker or exchange specification separately.
- Investor.gov — Understanding FeesInvestment fee and compounding context; enter the terms of your fund or account.
Frequently asked questions
Will the estimate match my exchange liquidation price?
Not necessarily. This is a simplified isolated-margin model. Tiered maintenance margin, mark prices, funding, fees and collateral rules can differ across exchanges.
What is a worked example for Liquidation Price?
Long at $100 with 10x leverage and 0.5% maintenance margin produces a simplified $90.50 estimate, 9.5% below entry.