Leverage calculator
Position size, liquidation price and the distance to it.
Fill in the fields and the result will appear here automatically.
Leverage increases the position size: collateral C at leverage L gives initial notional C×L. For a linear long position without costs, a fall of 1/L from entry consumes the initial collateral: 20% at 5× or 5% at 20×. The threshold here assumes a fixed maintenance amount defined as a percentage of initial notional. This is a teaching model, not an exchange liquidation quote: current-notional maintenance, risk tiers, mark price, fees and margin mode can give another result.
How it works
Formula and logic
Notional N=C×L and quantity Q=N/E. Maintenance M=N×m/100 stays fixed in this model. Solving C+Q(P−E)=M gives threshold P=E×(1−1/L+m/100), with drop 100/L−m percent. Require m/100<1/L so initial collateral exceeds maintenance. At 1× with zero maintenance the threshold is zero: a formula boundary, not a guaranteed exchange mechanism. A short position, inverse contract or maintenance based on current notional needs another formula.
Example
Collateral 50,000, leverage 5×, entry 2,400 and 0.5% maintenance on initial notional give a 250,000 position and model threshold 1,932, a 19.5% drop. A venue using current-notional maintenance has a different threshold and is not simulated here. At entry 100, leverage 1× and fixed maintenance share 0%, the modeled threshold is 0 and distance 100%. This is the limiting point of the chosen algebra, not a promise of no exchange liquidation.
Fields and units
- Margin posted — $
- Leverage, × — unitless
- Entry price — $
- Fixed maintenance share of initial notional, % — unitless
How to use
- — Enter the margin you are putting up.
- — Enter the leverage multiple.
- — Enter the entry price of the instrument.
- — Enter maintenance as a share of initial notional for this model; check the venue formula separately.
Method and limitations
- Calculation method
- Formula and logic
- Data or methodology source
- Bybit, UTA, 7 August 2026: current notional, mark price and liquidation terms differ from this fixed model
- Limitation
- Only a linear long with maintenance fixed from initial notional is shown. Venues may use current notional, mark price, tiers, fees and shared balances; this is not a venue liquidation forecast or risk assessment.
FAQ
Why does higher leverage bring liquidation so much closer?
Without maintenance or costs, the move that consumes initial collateral is 100/L percent. With positive m the model cushion is 100/L−m. At fixed m, doubling leverage does not necessarily halve that second cushion; m≥100/L is rejected as initially insufficient collateral.
What is the maintenance margin for?
Here it is a user-defined share of initial notional retained as a minimum collateral balance. Real venues can use current notional, risk tiers or deductions instead. Their quoted requirements cannot be substituted without checking the base.
Does this apply to short positions too?
The arithmetic mirrors, but the direction reverses: a short is liquidated by a rise, not a fall. This calculation is written for a long position.
Are funding and fees included?
No. Trading fees, borrowing charges and funding are excluded. Funding may debit or credit collateral depending on contract and period; its effect on a venue threshold must be assessed under venue rules.