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Bitcoin Loan Calculator

Calculate loan quotes, LTV, liquidation price, and repayment stats for Bitcoin-collateralized borrowing. Estimate monthly interest and total costs for crypto secured loans.

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Current USD value of your Bitcoin collateral

Amount you want to borrow

Annual interest rate on the loan

How long you'll have the loan

Maximum loan-to-value ratio before liquidation

Bitcoin Loan Basics

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What is a Bitcoin Loan?

Think of it like using your house as collateral for a loan, but with Bitcoin instead. You lock up your Bitcoin and get cash in return. You still own your Bitcoin, but you can't sell it until you pay back the loan. No credit check needed - your Bitcoin is your guarantee.

Loan-to-Value Ratio (LTV)

This is like a safety meter. If your Bitcoin is worth $100,000 and you borrow $30,000, your LTV is 30%. The lower the number, the safer you are. It's like only borrowing a small amount against your house - you have lots of room if prices drop.

Danger Price (Liquidation Price)

This is the Bitcoin price where you lose everything. If Bitcoin drops to this price, the loan company automatically sells your Bitcoin to get their money back. It's like a safety net that protects them, but it means you lose your Bitcoin forever.

Why Use Bitcoin Loans?

You get cash without selling your Bitcoin. It's like getting money from your house without selling it. You keep hoping Bitcoin goes up, but you can use the cash for emergencies or opportunities. No need to prove your income - your Bitcoin is proof enough.

How Interest Works

You pay interest every month, like rent on your loan. If you borrow $10,000 at 8% yearly, you pay about $67 per month in interest. The longer you keep the loan, the more interest you pay. Some companies let you pay just the interest and pay back the main amount later.

Where to Get Bitcoin Loans

Popular companies include Ledn, Unchained Capital, and Nexo. Each has different rules and interest rates. Always check their current rates and make sure they're trustworthy. Some keep your Bitcoin safe with insurance, others let you keep control of your Bitcoin.

How to Use This Calculator

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1. How Much Bitcoin Do You Have?

Enter how much your Bitcoin is worth in dollars right now. If you have 1 Bitcoin and it's worth $100,000, enter 100000. If you have half a Bitcoin worth $50,000, enter 50000. Check the current price on any Bitcoin website.

2. How Much Do You Want to Borrow?

Enter how much cash you want to get. This must be less than your Bitcoin value. Safe amount: borrow 30-40% of your Bitcoin value. Risky amount: borrow 50-70%. Most companies won't let you borrow more than 75% of your Bitcoin value.

3. What Interest Rate?

This is how much extra you pay each year. Most companies charge 6-15% per year. Good companies charge 6-8%. Newer or smaller companies might charge 10-15%. Check the company's website for their current rates.

4. How Long Do You Want the Loan?

Enter the number of months. Common choices: 6, 12, 24, or 36 months. Shorter time means less total interest but higher monthly payments. Longer time means more total interest but smaller monthly payments.

5. What's the Company's Safety Limit?

This is how much the company will let you borrow before they take your Bitcoin. Most companies use 50-80%. If they use 75%, it means they'll take your Bitcoin if you borrow more than 75% of what it's worth.

What You'll See

The calculator shows you: Total Amount to Pay Back (your loan plus interest),Your Risk Level (how safe your loan is), Danger Price (when you lose your Bitcoin), and Total Interest Cost (how much extra you pay).

Simple Example:

You have Bitcoin worth $100,000. You want to borrow $40,000 at 8% interest for 12 months. The company's limit is 75%.

• Your Risk: 40%
• Danger Price: $53,333
• Monthly Interest: $267
• Total Interest: $3,200
• Total to Pay: $43,200

Result: Medium risk. Bitcoin can drop 47% before you lose it. You pay $3,600 per month.

How the Calculations Work

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The Main Numbers We Calculate

1. Your Risk Level (LTV)

We divide how much you borrow by how much your Bitcoin is worth, then multiply by 100.

Example: Borrow $25,000 against $50,000 Bitcoin = 50% risk

2. Danger Price

We figure out what Bitcoin price would make the company take your Bitcoin.

Example: If Bitcoin drops to $33,333, you lose everything

3. Monthly Interest

We take your loan amount, multiply by the yearly rate, then divide by 12 months.

Example: $10,000 loan at 8% yearly = $67 per month in interest

Other Important Numbers

4. Total Interest

We multiply your monthly interest by how many months you'll have the loan.

Example: $67 per month × 12 months = $800 total interest

5. Total Amount to Pay

We add your original loan amount plus all the interest you'll pay.

Example: $10,000 loan + $800 interest = $10,800 total

6. Safety Buffer

We calculate how much Bitcoin can drop before you lose it.

Example: Bitcoin can drop 34% before you're in danger

📊 Real Example:

You have 1 Bitcoin worth $100,000. You borrow $50,000 at 8% yearly for 24 months. The company's limit is 75%.

  • • Your Risk Level: 50% (medium risk)
  • • Danger Price: $66,667 (Bitcoin can drop 33% before you lose it)
  • • Monthly Interest: $333
  • • Total Interest: $8,000 over 2 years
  • • Total to Pay Back: $58,000
  • • Your Cost: 16% of the loan amount over 2 years

How Much Should You Borrow?

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Very Safe (20-35% Risk)

Safety Level: Very High | Bitcoin Can Drop: 50-65%

Best for: People who worry a lot about losing money. Bitcoin can drop 40-60% before you lose it. You sleep well at night, but you can't borrow as much money.

Safe (35-50% Risk)

Safety Level: Good | Bitcoin Can Drop: 35-50%

Best for: Most people. Good balance between safety and getting money. Bitcoin can drop 30-40% before you lose it. This is the most popular choice.

Risky (50-65% Risk)

Safety Level: Medium-High | Bitcoin Can Drop: 20-35%

Best for: People who watch Bitcoin prices every day and have extra money ready. Bitcoin can only drop 20-30%. You get more money but need to watch closely and have emergency funds ready.

Very Risky (65-75% Risk)

Safety Level: High Risk | Bitcoin Can Drop: 10-20%

Best for: Professional traders and people who need money for a short time. Bitcoin can only drop 10-20%. You get the most money but it's very dangerous. You need to check prices every day.

Extremely Risky (75%+ Risk)

Safety Level: Very High Risk | Bitcoin Can Drop: Less than 10%

Best for: Only experts and professional traders. You're almost at the danger line. Bitcoin can only drop less than 10%. One small drop and you lose everything. Not recommended for most people.

Smart Strategy

Start safe (30-40% risk). If Bitcoin goes up 50%, your risk goes down - you can borrow more if needed. If Bitcoin drops 20%, add more Bitcoin or pay back some loan to stay safe. Change your plan as the market changes.

💡 Smart Rule:

The "50/30 Rule": Start by borrowing no more than 50% of your Bitcoin value. If Bitcoin drops 30% from when you started, either add more Bitcoin or pay back 30% of your loan. This rule keeps you safe while still letting you get money. Example: $100,000 Bitcoin → borrow $50,000. Bitcoin drops to $70,000 → add $15,000 Bitcoin OR pay back $15,000 loan to stay safe.

What Could Go Wrong?

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⚠️ You Could Lose Your Bitcoin

If Bitcoin's price drops to your danger price, the company automatically sells your Bitcoin. You lose your Bitcoin forever and might still owe money. There are no warnings and no second chances.

⚠️ Bitcoin Prices Change Fast

Bitcoin can drop 20-30% in just a few days, or 50-80% in bad markets. Your "safe" loan can become dangerous very quickly. Always keep extra money ready to add more Bitcoin or pay back some loan.

⚠️ The Company Could Fail

Some loan companies have gone bankrupt (like Celsius and BlockFi). Your Bitcoin could be frozen or lost. Only use well-known, insured companies. Some companies let you keep control of your Bitcoin.

⚠️ Interest Costs Money

At 10% yearly for 2 years, you pay 20% of your loan in interest. That's $10,000 on a $50,000 loan. If Bitcoin only goes up 15% during this time, you would have been better off selling some Bitcoin instead.

⚠️ Tax Problems

Getting the loan money isn't taxed (good!), but if you lose your Bitcoin, you still owe taxes on any gains. If you bought Bitcoin at $20,000 and lose it at $100,000, you owe taxes on the $80,000 gain - even though you lost everything.

⚠️ You Might Miss Out

If Bitcoin goes up 200% while you're paying 8% interest, you made a good choice. If Bitcoin drops 50%, you're paying interest on something that's losing value AND you could lose it all. Timing is important.

⚠️ You Must Act Fast

Some companies give you a few hours to add more Bitcoin before they take yours. If you don't respond quickly, you lose everything anyway. Check your email and phone messages regularly.

⚠️ Sudden Price Drops

Bitcoin can drop 30% in just minutes, then go back up. Your Bitcoin might be sold at the low price even if Bitcoin recovers quickly. You're still out of luck.

🚨 Important Safety Rules:

  • • Never borrow more than 50% of your Bitcoin value unless you're an expert with emergency money
  • • Keep 25-30% of your loan amount in cash to add Bitcoin or pay back loan if needed
  • • Set up price alerts 15-20% above your danger price so you know when to worry
  • • Only use companies with insurance and good reputations
  • • Never borrow more than you can afford to lose completely - you could lose 100% of your Bitcoin

Tax Stuff You Need to Know

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Important Tax Information:

Bitcoin loans have special tax rules. Getting the loan money isn't taxed because you have to pay it back. But if you lose your Bitcoin, you might still owe taxes. The rules are different in different places. Talk to a tax expert who knows about Bitcoin before you borrow.

Things That Don't Get Taxed

  • • Getting the loan money (USD or stablecoins)
  • • Putting your Bitcoin as collateral (just moving it)
  • • Paying back the loan
  • • Getting your Bitcoin back after paying off the loan

Things That Do Get Taxed

  • • Losing your Bitcoin (treated like selling it at the danger price)
  • • Taxes on any profit from when you first bought Bitcoin
  • • Interest payments (you might get some back if it's for business)
  • • Using stablecoins to pay back if they went up in value

You Need a Tax Expert

Bitcoin loan taxes are complicated and keep changing. The government treats losing your Bitcoin like selling it, even though you didn't choose to sell. If you bought Bitcoin at $20,000 and lose it at $100,000, you owe taxes on the $80,000 profit - even though you lost everything. Work with a tax expert who knows about Bitcoin to set up your loan the right way and save money for taxes if you lose your Bitcoin.

Smart Tax Tips

  • • Use Bitcoin you bought cheap first to pay less tax if you lose it
  • • Consider loans under 1 year to delay paying taxes on long-term gains
  • • You might get some interest back if the loan is for business
  • • Time losing your Bitcoin to match with other losses if possible

Keep Good Records

  • • Write down how much you paid for Bitcoin when you put it as collateral
  • • Save all loan papers, interest payments, and dates
  • • Keep papers showing when and how much Bitcoin was sold if you lose it
  • • Save proof that the loan was for business if you want to deduct interest