Bitcoin Loan Calculator
Calculate the collateral and liquidation price for a Bitcoin-backed loan.
Every calculator here runs on formulas verified against primary sources and is reviewed before it ships.
Learn about our methodology →
Methodology
We verify every formula against primary sources, run it on live data, and document each model's assumptions and limits.
Learn about our methodology →
Built and reviewed by Fabio Arcieri
Fabio Arcieri
Founder, Orange Abacus
Bitcoin researcher with a background in economics and a decade in digital marketing. He builds and reviews every calculator on this site against primary sources.
Read full profile →Last reviewed: June 2026
Key Bitcoin loan terms
Borrowing against Bitcoin comes with its own vocabulary. These are the terms relevant to taking a Bitcoin-backed loan, before you sign with any lender.
The basics
| Term | Definition |
|---|---|
| Collateral | The Bitcoin you lock up to back the loan. It stays in custody until you repay. |
| Principal | The amount you borrow, denominated in USD (or another fiat / stablecoin). |
| Loan-to-Value (LTV) | Principal divided by the dollar value of your collateral. Higher LTV means more leverage and less buffer. |
| APR | The annual cost of borrowing, expressed as a percentage of the principal. |
| Term | How long you have to repay, typically 6 to 60 months for BTC-backed loans. |
Liquidation mechanics
| Term | Definition |
|---|---|
| Liquidation LTV | The LTV threshold at which the lender force-sells your collateral. Usually 75–85%. |
| Liquidation price | The BTC price at which liquidation triggers, given your current LTV. |
| Margin call | A warning issued before liquidation. You can add collateral or repay to restore the LTV. |
| Cure period | The grace window after a margin call to act before liquidation triggers automatically. |
| Health factor / collateral ratio | The inverse of LTV (e.g., 200% means 2× collateralised). Some platforms use this instead of LTV. |
| Index / oracle price | The BTC price feed the lender uses to compute LTV; may differ from spot or any single exchange. |
| Partial vs. full liquidation | Whether the lender sells only enough to restore LTV, or your entire collateral position. |
Repayment structure
| Term | Definition |
|---|---|
| Bullet loan | Interest-only payments during the term, full principal due at maturity. The default structure for BTC loans. |
| Amortising loan | Equal monthly payments of principal plus interest. Rare for BTC-backed loans. |
| Interest accrual | Simple interest is charged on the principal only; compound interest is charged on accumulated interest as well. |
| Prepayment penalty | A fee for repaying the loan early. Less common in crypto lending but worth checking. |
| Refinancing / rollover | Extending or replacing the loan at maturity instead of repaying it outright. |
Fees & costs
| Term | Definition |
|---|---|
| Origination fee | A one-time fee charged at disbursal, expressed as a percentage of the principal. |
| APR vs. APY | APR is the stated annual rate; APY includes the effect of compounding. APY > APR when interest compounds monthly or more often. |
| Effective APR | The true annualised cost of the loan, including origination, fees, and any spread. |
Custody & counterparty risk
| Term | Definition |
|---|---|
| Custodial vs. non-custodial | Whether the lender holds your BTC directly, or it sits in multi-sig / on-chain escrow you partly control. |
| Rehypothecation | The lender re-lending your collateral to a third party. Adds counterparty risk and historically the cause of major lender failures. |
| Proof of reserves | A cryptographic attestation that the lender actually holds the collateral they claim. |
| Counterparty risk | The risk that the lender becomes insolvent before you can reclaim your BTC. Independent of market risk. |
| Stablecoin disbursement | Receiving USDC or USDT instead of fiat. Avoids banking but adds stablecoin issuer risk on top of the lender’s. |
How to use this calculator
- Borrow amount — the cash you want to receive, in USD.
- LTV — what fraction of your BTC’s value you borrow against.
- Interest rate (APR) — the annual rate the lender charges.
- Loan term — duration of the loan: 6, 12, 24, 36, or 60 months.
Advanced settings:
- Liquidation LTV — the LTV threshold at which the lender liquidates the collateral.
- Origination fee — a one-time fee charged on the loan amount at closing, expressed as a percentage.
- Margin-call buffer — how many percentage points below the liquidation LTV the lender issues a margin call warning.
How to read the output
- BTC collateral required — the bitcoin you need to post.
- Liquidation price — BTC price at which the lender sells your collateral.
- Liquidation buffer — how far BTC can fall before you’re liquidated.
- Margin call price — the warning level.
- Monthly interest — interest-only payment at the chosen APR, with principal due at term end.
- Total to repay — principal plus all interest over the full term.
- Effective APR — the annualized cost of the loan including the origination fee, if set.
- Origination fee — the upfront dollar cost of the fee on your loan amount.
- Total interest — the cumulative interest paid over the full term, separate from fees.
- All-in cost — total repayment plus origination fee: the complete cost of the loan.
Why use a Bitcoin-backed loan
Borrow against your stack without selling it.
- No taxable event. A loan is not a disposal in most jurisdictions; no capital gains event triggers.
- Keep the upside. Price appreciation while borrowing is still fully yours.
- No credit check. Lenders care about collateral, not your credit score.
- Fast liquidity. Most lenders fund within 24–72 hours.
- Flexible use. The cash can go toward anything.
Frequently asked questions
Do I need a credit check to get a Bitcoin loan?
No. The collateral covers the lender's risk, so there is no need to assess your creditworthiness. Identity verification (KYC) is standard, but income, credit history, and debt-to-income ratios are not part of the process.What happens to my Bitcoin while I'm borrowing?
The pledged BTC is held in custody by the lender or a qualified third-party custodian for the duration of the loan. The borrower retains legal ownership and price exposure but has no operational control over the collateral until the debt is fully repaid. Before committing, verify the custodial structure, asset segregation policy, and any applicable insurance arrangements.Can I repay a Bitcoin loan early?
Most BTC-backed loan structures permit early repayment, with interest charged only on the outstanding principal for the period used. Some agreements include a prepayment penalty, expressed as a percentage of the remaining balance or a minimum number of months' interest. Review the specific loan terms before signing.What can I use a Bitcoin loan for?
The proceeds are unrestricted cash. Common uses include real estate purchases, business investment, tax payments, and covering large expenses, all without selling your BTC or triggering a capital gains event.Is there a minimum amount to get a Bitcoin loan?
Custodial lenders typically set minimums in the $1,000–$10,000 range to cover operational and custody costs. Decentralized lending protocols generally impose no stated minimum, though smart contract risk and on-chain transaction costs set practical lower bounds.How long does it take to receive a Bitcoin loan?
Custodial lenders typically fund within 24–72 hours of completed KYC, collateral transfer, and loan agreement execution. Some offer same-day disbursement for returning or pre-approved borrowers. Decentralized protocols execute on-chain at deposit with no KYC wait, but disburse stablecoins rather than fiat.In what currencies can I receive a Bitcoin loan?
Most BTC-backed lending products disburse in USD. A subset also support EUR, GBP, CAD, and USD-pegged stablecoins; the latter are standard in decentralized protocols where fiat rails are absent. Confirm disbursement options and regional availability before applying.Can I receive a Bitcoin loan in stablecoins?
Yes. Many lenders disburse in stablecoins, with USDC and USDT being the most common, and the default option on decentralized protocols, where fiat rails are absent. Stablecoin disbursement avoids banking delays and cross-border friction, but layers the issuer's counterparty risk on top of the lender's: if the stablecoin de-pegs or its reserves are frozen, the value of your loan proceeds is affected independently of the lender's solvency.Are Bitcoin loans available in my country?
Availability depends on local regulation and the lender's licensed operating regions. Most centralized lenders serve specific jurisdictions and may exclude certain countries or states. Decentralized protocols are accessible from most locations, though local laws may restrict their use. Always confirm that the lender operates legally in your country before applying.What is a Bitcoin-backed loan?
A Bitcoin-backed loan lets you borrow cash against your BTC without selling it. You post bitcoin as collateral, the lender disburses the funds, and your BTC stays locked until you repay. If the collateral's value drops below the lender's liquidation threshold, the pledged BTC is sold to recover the outstanding balance.What is LTV?
LTV (loan-to-value) is the ratio of the loan amount to the current dollar value of the posted collateral. Lower LTV means more collateral relative to the debt, providing a larger price buffer before the liquidation threshold is reached. Higher LTV means greater leverage and a liquidation price that sits closer to current market levels.What happens if the price of Bitcoin drops?
A price decline reduces the collateral's dollar value, which raises the borrower's LTV in real time. Once LTV reaches the margin-call level, the lender requires the borrower to restore the ratio by posting additional collateral or repaying part of the principal. If LTV continues rising to the liquidation threshold, typically 80–85%, the lender sells the pledged BTC to recover the outstanding balance.What is a margin call?
A margin call is a formal notice that the borrower's LTV has reached the pre-defined warning level, typically 5–15 percentage points below the hard liquidation threshold. The borrower must restore the ratio by depositing additional collateral or repaying part of the principal. It is the final opportunity to act. Positions that reach the liquidation threshold are closed automatically.