Short answer: Cross Margin interest is calculated hourly and charged at the top of each hour. When you repay, you pay interest first, then principal. If you get the order wrong, you may keep paying while interest continues to grow.
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Below we break down "when it is charged" and "how repayment works" in detail.
When interest starts and when it is charged
Understand the Cross Margin interest timeline.
Interest starts the moment you borrow funds. Interest is calculated hourly as simple interest. Any period shorter than 1 hour is counted as 1 full hour.
Key time points:
When the loan is successful: the first 1-hour interest is recorded immediately
At every top of the hour, such as 13:00 or 14:00: the next 1-hour interest is recorded
This continues until you repay in full
Completion standard: You should be able to explain that interest accumulates at loan success and at every top of the hour, not by calendar day.
Example (source: Binance official Help Center, updated 2026-06-23): Assume an hourly interest rate of 0.001%. You borrow 1000 USDC at 13:20 and repay at 14:15.
13:20 loan successful → 1st hour of interest
14:00 → 2nd hour of interest
Even though you only borrowed for 55 minutes, you are charged 2 hours of interest
Total interest = 1000 × 0.001% × 2 = 0.02 USDC
Common mistake: Some people think "I borrowed for only half an hour, so I only pay half an hour of interest." That is not correct. The system charges by top-of-the-hour intervals. Even if you borrow for only 1 minute, you may be charged 1 hour of interest, depending on the borrowing time.
Where interest is deducted and how it affects your account
Understand the actual impact of interest charges.
Cross Margin interest is not deducted as a separate payment. Instead, it is added directly to your total liability. As interest accumulates, your total debt becomes larger.
Open your Margin Account and check the total liability section. You may notice that even if you have not borrowed any new funds, this number can still increase. That is interest growing.
Completion standard: You can find the total liability and the recorded interest in the asset page.
Risk warning:
Unpaid interest is included in the risk rate calculation (source: Binance official Help Center, updated 2026-06-23). Risk rate = total asset value / (total liability + unpaid interest). If interest remains unpaid for a long time, the risk rate will keep falling, which may trigger a margin call or even forced liquidation. Liquidation is not only caused by falling prices. Interest eating into your margin can also drag you down.
Repayment order: interest first, then principal
Understand where your repayment money goes.
The Cross Margin repayment order is fixed: interest first, principal second. Your repayment is first used to pay off accrued interest. After the interest is fully paid, the remaining amount is used to repay the borrowed principal.
You can check the interest details of each loan under Margin Account → Borrow History. The system automatically allocates repayment in the correct order, so you do not need to split it manually.
Completion standard: After repayment, the "unpaid interest" for that loan shows 0 in Borrow History, and the remaining repayment amount reduces the principal.
Case A: Manual repayment
Assets → Margin Account → find the coin → click Repay → enter the amount → confirm. The system automatically deducts interest first, then principal.
Completion standard: After a successful repayment, the "unpaid interest" for that coin returns to zero and the "borrowed amount" decreases.
Case B: Auto repayment
Cross Margin supports auto repayment. After you sell an asset, the system automatically uses the received funds to repay the liability for that coin. The order is still interest first, then principal.
Completion standard: After a successful auto repayment, the liability amount decreases and a corresponding repayment record appears in Borrow History.
Interest calculation changes after April 2026
Starting from April 30, 2026, newly initiated margin loans have a slight adjustment to the interest calculation rule: the first interest charge is calculated based on the actual number of seconds from the borrowing time to the next top of the hour, instead of charging a full 1 hour immediately at borrowing. After the first interest charge, subsequent interest continues to be calculated by full hourly intervals.
If you borrow after April 30, 2026, your first interest charge may be slightly lower than before, especially if you borrow close to the top of the hour. Check the interest details in Borrow History to confirm the actual amount charged.
Completion standard: You confirm your borrowing time and verify the first interest calculation in Borrow History.
How to verify the operation is complete
Open Assets → Margin Account → check whether the "unpaid interest" for that coin is 0 and whether the "borrowed amount" has decreased. If you used the "Repay all debts" function, confirm that total liability is zero and the risk rate has returned to a normal level.
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FAQ
Question: Is the Cross Margin interest rate fixed?
Answer: No. Margin account interest rates are adjusted every hour based on market conditions. You can check the latest rate on the Margin Data page. The interest rate may change during your loan period, but already accrued interest is calculated at the rate that applied at that time.
Question: Is there a discount for paying interest with BNB?
Answer: Cross Margin users can get a 5% discount on interest when paying with BNB (source: Binance support page, updated 2021-01-17). You need to maintain a sufficient BNB balance in your Cross Margin account. The interest discount only applies to Cross Margin, not Isolated Margin.
Question: What is the difference between "Repay all debts" and "Close position"?
Answer: "Repay all debts" only repays the money and does not change your position structure. The system automatically sells assets in your account to repay the debt, but it does not close your position, if you still have any remaining position. "Close position" closes the position first and then repays the debt, clearing the position and selling all remaining assets. Both can repay the debt, but the former may leave you still holding a position after repayment, while the latter is a full exit.
