Bitcoin Loan & Collateral Calculator
Borrow against your Bitcoin without selling it. Calculate LTV ratios, liquidation prices, and compare the cost of borrowing vs. selling.
Loan Parameters
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Enter your Bitcoin collateral and loan details to see LTV analysis, liquidation prices, and a borrow-vs-sell comparison
Bitcoin Loan Platform Comparison
Dated April 2026. Treat this as a planning table, not a live rate sheet: lender terms, regions, rates, and custody arrangements change often.
| Platform/model | Custody model | Typical LTV | Margin call / liquidation | Rate notes | Best fit / key risk |
|---|---|---|---|---|---|
| Ledn | Centralized custody; BTC held with institutional custodians | Up to 50% commonly advertised | Margin call and liquidation thresholds depend on the active loan agreement | Rates and availability vary by jurisdiction; verify current terms before applying | Borrowers who want a known CeFi lender and accept third-party custody risk |
| Unchained | Collaborative custody model with multisig structure | Often lower-LTV, conservative structures | Designed around overcollateralization; exact thresholds depend on product terms | Availability can be limited and underwriting may be stricter than generic CeFi | Borrowers who value custody transparency and lower operational risk |
| Nexo | Centralized platform custody; terms vary by region and account status | Flexible LTV ranges when available | Automated collateral health monitoring and liquidation rules | Product availability, rates, and eligible regions change frequently | Users comparing flexible CeFi credit lines, with careful counterparty review |
| Generic CeFi lender | Usually full lender custody or third-party custodian custody | 25%–60% depending on risk appetite | Higher LTV means margin calls arrive faster during drawdowns | Use this fallback when live lender rates are unstable or unavailable | Early planning before checking exact lender disclosures |
LTV, margin calls, and liquidation explained
LTV is loan value divided by Bitcoin collateral value. If you borrow $50,000 against $100,000 of BTC, your starting LTV is 50%. If BTC falls, the collateral value shrinks and LTV rises. A margin call asks you to add BTC or repay part of the loan; liquidation means the lender sells collateral to reduce risk.
50% BTC drawdown example
A $50,000 loan against 1 BTC at $100,000 starts at 50% LTV. If Bitcoin drops to $50,000, the same loan becomes 100% LTV before interest or fees. That move can trigger urgent collateral requests or liquidation, even if the loan looked conservative at entry.
How to Use the Bitcoin Loan & Collateral Calculator
Borrow against your Bitcoin without selling it. This calculator helps you understand LTV ratios, liquidation risks, and whether borrowing beats selling from a tax perspective.
1Enter Your Bitcoin Collateral
Start by entering how much Bitcoin you want to use as collateral. This is the BTC you'll lock with a lending platform to secure your loan. Click the "Live" button to auto-fill the current Bitcoin price, or enter a custom price for scenario planning. The calculator instantly shows your total collateral value in USD and the maximum amount you can borrow based on your chosen LTV ratio.
2Choose a Platform Preset or Custom Settings
Select from three platform presets — Conservative (50% max LTV), Standard (60%), or Aggressive (75%) — which automatically configure margin call and liquidation thresholds. Each preset reflects real-world lending platform parameters. If you have specific platform terms, choose "Custom Settings" to manually adjust LTV, margin call, and liquidation percentages. Understanding these thresholds is critical: the margin call LTV is where the platform asks you to add more collateral, and the liquidation LTV is where your Bitcoin gets force-sold.
3Configure Loan Terms and Interest Rate
Set your desired loan amount, annual interest rate, and loan term. The interest rate slider ranges from 1% to 25% APR, covering everything from institutional-grade rates to DeFi protocol rates. Loan terms span 3 to 60 months. The calculator generates an amortization schedule showing your monthly payment breakdown between principal and interest, helping you compare total borrowing costs across different term lengths.
4Review Liquidation Risk and Health Factor
The results dashboard shows your exact liquidation price and margin call price — the Bitcoin price levels where your collateral is at risk. The "distance to liquidation" percentage tells you how far Bitcoin must fall before your position is forcibly closed. The health factor (above 1.5 is safe, below 1.2 is danger) gives you an instant read on your loan's safety. A lower LTV means a lower liquidation price, giving you more room to weather Bitcoin's volatility without losing your collateral.
5Compare Borrowing vs. Selling Your Bitcoin
The borrow-vs-sell comparison is the most powerful feature. It compares the total cost of borrowing (interest payments) against the tax cost of selling Bitcoin (capital gains tax at 23.8%). If Bitcoin appreciates during the loan term, the calculator factors in the unrealized gains you would have forfeited by selling. This "net advantage" metric shows whether borrowing or selling is the better financial decision based on your specific numbers and growth assumptions. For many long-term holders, borrowing against Bitcoin at 8% interest is cheaper than paying 23.8% capital gains tax — especially if Bitcoin's price rises during the loan period.
Understanding Bitcoin-Backed Loans: Borrow Without Selling
A Bitcoin-backed loan allows you to use your BTC as collateral to borrow fiat currency (USD, EUR, etc.) without triggering a taxable event. Unlike selling Bitcoin, which generates capital gains tax obligations, borrowing against your holdings lets you access liquidity while maintaining upside exposure to Bitcoin's price appreciation.
The loan-to-value (LTV) ratio is the most critical metric. An LTV of 50% means you borrow $50,000 against $100,000 worth of Bitcoin. Lower LTV ratios provide more safety margin — if Bitcoin's price drops 30%, a 50% LTV loan still has buffer before liquidation, while a 75% LTV loan would already be at risk.
Liquidation occurs when Bitcoin's price drops far enough that your collateral no longer adequately covers the loan. At that point, the lending platform force-sells your Bitcoin to recover the borrowed funds. Understanding your exact liquidation price before taking a Bitcoin loan is essential risk management. Most platforms issue a margin call warning at a lower threshold, giving you time to add more collateral or repay part of the loan.
When Does Borrowing Against Bitcoin Make Sense?
Borrowing against Bitcoin is most advantageous for long-term holders who believe Bitcoin's price will appreciate over the loan term. If you bought BTC at $10,000 and it's now $95,000, selling triggers capital gains tax on $85,000 of profit. At the combined federal rate of 23.8% (20% LTCG + 3.8% NIIT), that's over $20,000 in taxes. A 12-month loan at 8% interest on the same amount costs significantly less in total interest, and you keep your Bitcoin.
However, borrowing carries liquidation risk that selling doesn't. If Bitcoin drops sharply during your loan term, you could lose your collateral entirely. The borrow-vs-sell analysis in this calculator helps you quantify both scenarios so you can make an informed decision based on your risk tolerance and price outlook.
Frequently Asked Questions
Sources & Methodology
Loan-to-Value (LTV) is computed as principal ÷ (Bitcoin collateral × live BTC price). The liquidation price is solved as principal ÷ (collateral × liquidation LTV), where liquidation LTV is set by the lender (typically 80–90%). Margin call price is computed at the warning LTV (typically 70%). Total interest is calculated on the principal using the lender's stated APR over the loan term, with monthly compounding. Live Bitcoin price comes from CoinGecko.
- Aave V3 Risk Parameters — Aave Protocol
- CFPB — Crypto-collateralized lending consumer guidance — U.S. Consumer Financial Protection Bureau
- Bitcoin live spot price — CoinGecko
Disclaimer: Bitcoin-collateralized loans carry liquidation risk. A sharp price drop can trigger forced sale of your collateral. This calculator does not account for borrower KYC, regional availability, or counterparty risk. Always read the lender's full terms.
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Disclaimer
This calculator is for educational and estimation purposes only. Bitcoin-backed loan terms, interest rates, and liquidation thresholds vary by platform and change frequently. Borrowing against Bitcoin carries significant risk including total loss of collateral. Always review specific platform terms and consult a financial advisor before taking a Bitcoin-backed loan.