Bitcoin Loan Calculator
With bitcoin at $77,597, 1 BTC pledged at a 50% loan-to-value (LTV) secures a loan of about $38,798. At typical US terms (70% and 80% LTV), you would get a margin call if bitcoin fell to $55,426 and be liquidated at $48,498 — a fall of 37.5%. Since 2014, bitcoin fell that far at some point within the following 12 months in 33% of cases.
Live price · United States · Canada (lenders, tax and rules)
| If bitcoin falls to | Change | Collateral worth | LTV | What happens |
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LTV = loan ÷ collateral value. Liquidation price = price × starting LTV ÷ liquidation LTV (with interest added to the loan, it rises over the term). Simple interest; real lenders may charge fees, use different LTV steps and sell only part of your collateral. Not financial advice.
Bitcoin loans in the United States →
Nine lenders' published terms (LTV, margin call, liquidation, rates, custody, excluded states), how the IRS treats a loan and a liquidation, and what 2022's lender failures teach.
Bitcoin loans in Canada →
The lenders operating under securities-regulator relief, the 80%/90% rules they follow, other options, and how the CRA treats a loan and a liquidation. In Canadian dollars.
Bitcoin Loans: FAQ
How does a bitcoin-backed loan work?
You hand your bitcoin to a lender (or lock it in a multisig or smart contract) as collateral and borrow cash or stablecoins against it, usually up to 50% of its value. You pay interest and get the bitcoin back when you repay. If the price falls and the loan grows too large compared with the collateral, the lender asks for more bitcoin or a repayment (margin call) and, if the loan-to-value keeps rising, sells some or all of your bitcoin (liquidation).
What is the liquidation price of a bitcoin loan?
Liquidation price = bitcoin price today × starting LTV ÷ liquidation LTV. At 50% and 80%, that is 62.5% of today's price: $48,498 for a loan taken now. Interest added to the loan pushes it higher over time.
How likely is a liquidation?
Since 2014, bitcoin fell 37.5% or more below the starting price at some point within the next 12 months in about 33% of all start days. A lower starting LTV, adding collateral after a margin call or repaying early cuts that risk; the past doesn't predict the future.
Do you pay tax when you borrow against bitcoin?
In the US and Canada, generally not when you borrow, but a liquidation counts as a sale. See the US and Canada pages.
Related: profit calculator · bitcoin drawdowns · volatility · bitcoin tax by country · US lenders · Canadian lenders