CoinAera

Liquidation Calculator

Estimate the liquidation level of a leveraged crypto long or short position.

Enter entry price and leverage to estimate the liquidation level for long and short positions before you open the trade.

How to use

  • 1) Pick a coin and we fill current price.
  • 2) Adjust inputs; results auto-refresh.
  • 3) Copy results and open the next tool if needed.

Inputs

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Recent & popular

Live price fills entry/buy fields for quick setup. Adjust any value before calculating.

USD
x
Enter values and click Calculate to see results.

How it works

Provide entry price, side, and leverage. The calculator uses a simplified maintenance margin model to approximate where your margin would be exhausted, which helps you compare safer and riskier leverage choices before the order goes live.

Formula

For a long: Liquidation Price ≈ Entry × (1 − Maintenance Margin × Leverage). Key variables: entry price (your fill), leverage (multiple of margin), maintenance margin (exchange tier %, often 0.4–1%), and position size (drives how quickly equity erodes). Higher leverage or higher maintenance margin pulls liquidation closer.

Example

Example: Entry $40,000 BTC, 10x long, maintenance 0.5%. Liquidation ≈ 40,000 × (1 − 0.005 × 10) ≈ $38,000. With a $10,000 notional (1,000 margin × 10x), a 5% drop toward $38k consumes margin and triggers forced close. The same trade at lower leverage would place liquidation much further away, which is often more important than squeezing out extra notional.

What affects the result

Liquidation happens when volatility pushes price against you and your equity falls below maintenance. High leverage shrinks your buffer, insufficient margin leaves no room to absorb swings, and funding costs can slowly reduce equity on perp contracts. Many traders think of liquidation as a rare edge case, but on volatile pairs it is often just the natural result of oversized leverage.

How to improve accuracy

To avoid liquidation: use lower leverage, size positions with account-based risk caps, add extra margin on volatile pairs, place stop losses well before liquidation, and monitor funding or borrow costs that can erode equity. If the liquidation level still sits too close to entry, the setup is too fragile.

Tips

  • Keep leverage low so liquidation stays far from entry.
  • Size positions by account risk; avoid overexposure on volatile pairs and thin books.
  • Place stop losses well before liquidation to avoid forced closes and extra fees.
  • Recheck liquidation after funding payments or tier changes on your exchange.

FAQ

What is liquidation price in crypto?

It’s the estimated price where your leveraged position is force-closed because equity drops below maintenance margin.

How is liquidation price calculated?

It depends on entry price, leverage, maintenance margin, and fees. A simple long formula is Entry × (1 − Maintenance × Leverage).

What happens when liquidation occurs?

The exchange closes your position to repay borrowed funds. You may lose most or all of your margin and pay fees or penalties.

How do traders avoid liquidation?

Keep leverage low, size positions to a small account risk %, add margin buffers, and set stop losses before the liquidation level.

Continue your trade plan

Move from this calculator into the next tools that usually matter most: sizing, reward-to-risk, fees, and the supporting guides that explain the trade logic.

Step 1 → Profit CalculatorStep 2 → Position Size CalculatorStep 3 → Risk Reward CalculatorStep 4 → Liquidation Calculator

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