Liquidation Price Calculator
Find the exact price at which your leveraged crypto position will be forcibly closed by the exchange. Enter your entry price, leverage, maintenance margin, and position direction to avoid surprise liquidations.
About this calculator
On leveraged crypto exchanges, a position is liquidated when your remaining margin falls to the maintenance margin level — the minimum collateral the exchange requires. For a long position, the liquidation price is: Liquidation Price (long) = entryPrice × (1 − 1/leverage + maintenanceMargin/100). For a short position: Liquidation Price (short) = entryPrice × (1 + 1/leverage − maintenanceMargin/100). The term 1/leverage represents the fraction of the position funded by your own capital; when the market moves against you by that fraction (minus the maintenance margin buffer), your equity is wiped out. Higher leverage compresses the distance between entry and liquidation, making positions far more sensitive to small price moves.
How to use
You open a long position on BTC at $30,000 with 10× leverage and a 0.5% maintenance margin. Step 1 — Calculate 1/leverage: 1/10 = 0.10. Step 2 — Apply the long formula: $30,000 × (1 − 0.10 + 0.005) = $30,000 × 0.905 = $27,150. Your position is liquidated if BTC drops to $27,150 — just a 9.5% decline from entry. Now try a short at the same parameters: $30,000 × (1 + 0.10 − 0.005) = $30,000 × 1.095 = $32,850 liquidation price.
Frequently asked questions
How does leverage affect the liquidation price in crypto trading?
Higher leverage dramatically narrows the gap between your entry price and liquidation price. At 2× leverage, a long position can withstand roughly a 50% drop; at 20× leverage, only a 5% drop triggers liquidation. This makes high-leverage positions extremely risky in volatile crypto markets where 5–10% swings are routine. Most professional traders keep leverage below 5× to give positions enough room to breathe without getting liquidated by normal market noise.
What is maintenance margin and why does it matter for liquidation?
Maintenance margin is the minimum equity, expressed as a percentage of position size, that an exchange requires you to keep at all times. When your equity falls below this threshold, the exchange automatically closes your position to protect itself from losses. A higher maintenance margin means liquidation happens slightly earlier — before your equity fully reaches zero — which is why it appears in the liquidation formula. Different exchanges set different maintenance margins, typically ranging from 0.5% to 2%, so always check your platform's specific rate.
How can I avoid getting liquidated on a leveraged crypto trade?
The most effective strategies are using lower leverage, setting a stop-loss above your liquidation price, and adding margin to your position if the market moves against you. Keeping a buffer — say, setting a manual stop-loss at 50% of the distance to liquidation — gives you an orderly exit before the forced close. Monitoring your margin ratio in real time and avoiding overleveraging during high-volatility events (e.g., CPI releases, Fed announcements) also reduces liquidation risk significantly.