Crypto Loan LTV & Margin Call Calculator

Change	Price	LTV
0%	$100,000.00	40%
-10%	$90,000.00	44.44%
-20%	$80,000.00	50%
-30%	$70,000.00	57.14%
-40%	$60,000.00	66.67%
-50%	$50,000.00	80%
-60%	$40,000.00	100%

How LTV, margin call and liquidation work

LTV is the loan divided by the current value of the collateral. A loan of 40,000 USDT against 1 BTC worth $100,000 has an LTV of 40%. When the coin price falls, the collateral value falls and the LTV rises even though you did not borrow more. Lenders set two thresholds: at the margin-call LTV they ask you to add collateral or repay part of the loan; at the liquidation LTV they sell enough collateral to protect themselves, usually with a penalty.

Because the loan amount is fixed, each threshold corresponds to a precise price. That is what the calculator shows: the margin-call price and the liquidation price, and the percentage drop from today’s price to each of them. The stress table repeats the LTV for drops of 10% to 60% so you can see how fast the buffer disappears.

LTV               = loan ÷ (collateral amount × price)
margin call price = loan ÷ (collateral amount × margin-call LTV)
liquidation price = loan ÷ (collateral amount × liquidation LTV)
top-up (coins)    = loan ÷ (target LTV × price) − collateral amount
interest          = loan × APR × days ÷ 365

Example: 40,000 USDT against 1 BTC

Collateral 1 BTC at $100,000, loan 40,000 USDT, margin call at 75% LTV, liquidation at 83%, target 50%, 10% APR for 180 days. The LTV is 40%. A margin call would come at $53,333 per BTC — a 46.7% fall — and liquidation at about $48,193, a 51.8% fall. At the 50% target you could borrow another $10,000. Interest for 180 days is about $1,973.

If BTC dropped to $60,000, the LTV would be 66.7%: no margin call yet, but above the 50% comfort level. Getting back to 50% would need either 0.333 more BTC as collateral or repaying $10,000 of the loan. The calculator shows both options so you can decide before the lender decides for you.

How to keep a crypto loan safe

Start low. An initial LTV of 25–40% survives the kind of 50% drawdowns crypto has seen many times.
Know your lender’s exact thresholds — they differ between platforms and coins, and some change them in volatile markets.
Keep a reserve of stablecoins or extra coins you can post as collateral within minutes, not days.
Set price alerts at the margin-call price and a level above it.
Count interest: unpaid interest is often added to the loan, which raises the LTV over time.
Remember counterparty risk: centralized lenders can freeze withdrawals; DeFi protocols have smart-contract and oracle risk.

A crypto loan is leverage. If the plan is to buy more of the same coin with the borrowed money, the liquidation price moves much closer, because the extra exposure is not counted as collateral.

Loan vs selling

People borrow against crypto to avoid selling — often to defer a taxable sale or to keep long-term exposure. The interest and the liquidation risk are the price of that choice. Compare the interest for the term with the tax and fees you would pay when selling, and model a bad month in the stress table. If a liquidation would force a sale at the worst moment, a partial sale today may be the cheaper option.

Frequently asked questions

+What is a good LTV for a crypto loan?

Lower is safer. Many borrowers stay between 25% and 40% so that the price can roughly halve before a margin call. The right level depends on your lender’s thresholds and how quickly you can add collateral.

+What is the difference between margin call and liquidation?

A margin call is a request to add collateral or repay; nothing is sold yet. Liquidation is the forced sale of collateral when the LTV reaches the liquidation threshold, usually with an extra fee.

+How do I lower my LTV?

Add collateral or repay part of the loan. The calculator shows how many coins to add or how much to repay to reach your target LTV.

+Does the calculator work for DeFi loans like Aave?

Yes, with one translation: DeFi protocols express the liquidation point as a liquidation threshold (an LTV). Enter it as the liquidation LTV; use your own comfort level for the margin-call field.

+Is the interest added to the loan?

On many platforms unpaid interest accrues to the loan balance, which slowly raises the LTV. The calculator shows the interest for the term so you can add it to the loan amount and recheck.

Calculations run entirely in your browser; nothing you type is sent to KOT.CASH. Results are estimates for information only and are not financial, tax or legal advice.