Bitcoin Loan Calculator

How to read these numbers

• Collateral value— the current USD value of the Bitcoin you're pledging. This changes every time Bitcoin's price moves, even though your loan balance stays fixed.
• Max loan amount — the most you can borrow at the chosen LTV. Most lenders offer origination LTVs between 50% and 80%. Borrowing at max LTV leaves almost no buffer.
• Margin call price— the Bitcoin price at which your LTV reaches the lender's margin call threshold. At this point the lender will contact you and require action. The assumed margin call LTV is shown below the price in the calculator — it varies by lender and is an estimate.

LTV (Loan-to-Value) is the core risk number. A 50% LTV means you borrow $50,000 against $100,000 of Bitcoin. With a typical 70% margin call threshold, Bitcoin needs to drop roughly 29% before a margin call fires — but Bitcoin has declined 60–80% in past bear markets, so even 50% LTV carries real risk. An 80% LTV is more aggressive: an 11% price drop can trigger a margin call.

Margin call vs. liquidation: two different thresholds

These are not the same event — and the gap between them is the time you have to act.

A margin call is a warning. It fires when your LTV crosses a first threshold — commonly 70–85% depending on the lender. At that point the lender notifies you and gives you a window to respond: add more Bitcoin as collateral, make a partial repayment, or some combination of both. If you respond, the loan continues.

Liquidation is what happens if you don't respond in time. The lender sells some or all of your Bitcoin to repay the loan. This typically triggers at a higher LTV threshold — commonly 85–95% — set in your loan agreement. The exact liquidation price is not shown in this calculator because it depends on your specific lender's terms, which vary significantly.

The gap between the two thresholds is your response window. A lender with a 75% margin call threshold and a 90% liquidation threshold gives you roughly a 20% further price decline to act before your Bitcoin is sold. A lender that liquidates at 85% — only 10 percentage points above the margin call — gives you much less time.

Always read the margin call and liquidation thresholds in your loan agreement before signing. These numbers are more important than the headline rate.

How lenders handle margin calls — it varies significantly

The process after a margin call threshold is crossed is one of the most important — and least-advertised — differences between Bitcoin lenders. Here is what varies:

What to do when a margin call is triggered

If you receive a margin call notification, you have three options — and how quickly you act matters more than which option you choose.

• Add Bitcoin as collateral. Posting additional BTC reduces your LTV immediately. This is usually the fastest option if you hold Bitcoin elsewhere. Most lenders provide a wallet address or portal for collateral top-ups.
• Make a partial repayment.Paying down part of the loan reduces the numerator in the LTV calculation, which brings your ratio back down. You may need to wire USD or stablecoin — confirm your lender's repayment process before you need it, not during a margin call.
• Sell some Bitcoin yourself. If you cannot add collateral or repay quickly, it may be better to sell Bitcoin at the current market price rather than let the lender liquidate at an automated price that may be less favorable. Some lenders liquidate at a slight discount to market to ensure execution speed.

The worst outcome is inaction. Ignoring a margin call notification typically leads to forced liquidation at whatever price Bitcoin is trading at that moment — which is rarely a good time to sell.

Strategies to reduce margin call risk

• Borrow at a lower LTV.Originating at 50% instead of 80% roughly triples the Bitcoin price decline needed to trigger a margin call — but no LTV is truly risk-free given Bitcoin's historical volatility. Some borrowers prefer 30–40% LTV to maintain a larger cushion. Use the calculator above to find the price point where you would face a margin call and ask yourself honestly whether you could respond quickly at that moment.
• Keep a collateral reserve. Hold additional Bitcoin that you can post quickly if needed. A 10–20% reserve relative to your collateral position gives you immediate options without needing to move money from a bank.
• Understand your lender's process before you borrow. Know the margin call threshold, the notification method, the response window, and the liquidation threshold. Read the loan agreement. Call the lender and ask what happens step by step if Bitcoin drops 30% overnight — their answer tells you a lot about how they operate.
• Set your own price alerts.Don't rely solely on your lender to notify you. Set Bitcoin price alerts at your margin call price (or 10% above it as an early warning) on any exchange or price app. This gives you more lead time.
• Choose a lender with a human in the loop. If you are borrowing a large amount, the difference between a lender that calls you and one that auto-liquidates is significant. Some lenders assign dedicated account managers to larger borrowers — this is worth asking about explicitly during the application process.

This calculator is for illustrative purposes only. LTV thresholds and margin call policies vary by lender and loan agreement. borrowonbitcoin.com is not a lender or financial advisor. Full disclosures.