Liquidation Price Calculator

Find your exact liquidation price before entering a leveraged position. Know your risk before the market does.

Liquidation Price Calculator
Estimate when your position gets liquidated based on leverage and maintenance margin.
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What is a Liquidation Price?

When you trade with leverage, you borrow capital from the exchange. If the market moves against you far enough to consume your margin, the exchange forcibly closes your position at the liquidation price. You lose your entire margin deposit for that trade.

Understanding your liquidation price before entering a trade is one of the most basic — and most ignored — rules of leveraged trading.

The Liquidation Price Formula (Isolated Margin)

Long:  Liq Price = Entry × Leverage / (Leverage + 1 − MMR × Leverage)
Short: Liq Price = Entry × Leverage / (Leverage − 1 + MMR × Leverage)

MMR = Maintenance Margin Rate (typically 0.4–0.5%)

Example: BTC long at $65,000 with 20× leverage and 0.5% MMR:

Liq Price = 65,000 × 20 / (20 + 1 − 0.005 × 20)
          = 1,300,000 / 20.9
          ≈ $62,200  (only 4.3% below entry)

How to Protect Your Position

Never let the exchange liquidate you — always set a stop-loss above your liquidation price. The standard practice is to set it at 40–60% of the distance to liquidation. This way, you control the exit and keep some capital instead of losing everything.

Also consider: the higher the leverage, the closer your liquidation price is to your entry. At 50× leverage, a 2% adverse move is enough to wipe your position.

Frequently Asked Questions

What is a liquidation price in crypto?
The liquidation price is the price at which your leveraged position is forcibly closed by the exchange. When the market reaches this price, your margin is fully consumed by losses and the exchange closes the trade to prevent further loss — you lose your entire margin deposit.
How do exchanges calculate liquidation price?
For isolated margin: Long Liq Price = Entry × Leverage / (Leverage + 1 − MMR × Leverage). Short Liq Price = Entry × Leverage / (Leverage − 1 + MMR × Leverage). MMR (Maintenance Margin Rate) is typically 0.4–0.5% on major exchanges like Binance and Bybit.
What is the difference between isolated and cross margin?
In isolated margin, only the funds allocated to that specific position are at risk — your liquidation price is fixed when you open the trade. In cross margin, your entire account balance acts as collateral, making liquidation prices harder to predict and potentially affecting all open positions simultaneously.
How can I avoid liquidation?
Set a stop-loss at 40–60% of the distance to your liquidation price. This lets you control your exit before the exchange forces it. For example, if your liq price is 10% away, set a stop-loss 5% away. Also, avoid adding to losing positions without adding margin.
What happens when you get liquidated?
When liquidation is triggered, the exchange closes your position at market price. You lose your entire margin deposit for that position, plus a liquidation fee (typically 0.5–1% of notional). In cross margin, this can cascade and affect your entire account balance.

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For informational purposes only. Not financial advice.