Calculator
Sell vs. Borrow Bitcoin Calculator
Two paths to cash from a Bitcoin position: sell some and pay capital gains tax, or borrow against it and pay an origination fee plus interest. This calculator puts both side-by-side with no recommended answer — the right path depends on inputs only you can supply.
What you paid per BTC, on average
Federal + state + NIIT. We do not estimate this for you — enter what you (or your CPA) think applies.
Loan path assumptions
Net cash to you
$62,688
You exit the position on the BTC sold. No future price exposure on that BTC, no margin-call risk, no interest cost.
Net cash at funding
$37,138
You keep the BTC and its future price exposure. The BTC pledged is subject to margin call and possible liquidation if its price falls.
What this comparison doesn't capture
- Future Bitcoin price movement — could increase or decrease either path's real cost.
- Margin call mechanics: liquidation fees (typically 2–5%), cure windows (24–72h), and partial vs. full liquidation differ by lender.
- Holding-period nuance — long-term vs. short-term capital gains, AMT, NIIT thresholds, state-specific rules. We treat your input as a single effective rate.
- Tax treatment of crypto-backed loans (e.g., rehypothecation, constructive sale arguments). Not legal or tax advice — confirm with a qualified professional.
- Reinvestment of borrowed proceeds — could outperform or underperform the loan rate.
- State-by-state lender availability — some products aren't offered in every state.
Outputs are illustrative and depend entirely on the inputs above. We are not a lender, broker, tax preparer, or registered investment advisor. Consult a CPA for tax questions and a fiduciary advisor for portfolio questions before acting.
Read the full framework
The calculator gives you the numbers. The article below walks through the qualitative factors — tax timing, custody and margin-call risk, cashflow drag, reinvestment risk, and the situations where each path tends to make sense.
Sell vs. borrow: a 2026 framework → · Compare loan lenders →How to read the two columns
- Sell path — gross sale proceeds minus estimated capital gains tax on the BTC you sell. Result is the net cash in your bank after settlement. You exit the position on that BTC; future price moves no longer affect you on the portion sold.
- Loan path — loan principal at your chosen LTV, minus origination fee. Result is the net cash at funding. Interest accrues monthly (or rolls to maturity if you toggle deferred interest). The BTC stays yours but is locked as collateral and subject to margin call if its price drops.
- Total cost of borrowing— origination fee plus interest over the term. This is what you pay to keep the BTC. Compare it to the tax you would pay to sell. They're not directly equivalent (one is a fee, the other is a tax), but they're both the cost of accessing cash without giving up the BTC.
- BTC retained — the headline difference. Selling reduces your holding permanently. Borrowing leaves the BTC in your name but pledged. If Bitcoin appreciates over the loan term, the loan path keeps that upside; if Bitcoin drops materially, the loan path can trigger a margin call.
What the calculator deliberately leaves out
We don't look up your tax bracket. We don't forecast Bitcoin's price. We don't model state-specific lender availability or AMT thresholds. We don't recommend either path. All those decisions belong to you and your advisors. The calculator is a worksheet — it does arithmetic on the inputs you provide.
One specific limitation worth naming: capital gains treatment of crypto-backed loans is still evolving. Most tax practitioners treat posting BTC as collateral the same way they treat posting a brokerage account as collateral for a margin loan — no realization event. But some lender arrangements (particularly those involving rehypothecation) have prompted IRS scrutiny. If your loan size is meaningful, get the tax treatment confirmed by a CPA familiar with digital assets before signing.
This calculator is for illustrative purposes only. We are not a lender, broker, registered investment advisor, or tax preparer. Outputs depend entirely on user-provided inputs and are not a forecast or recommendation. Full disclosures.