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To estimate a Bitcoin-backed loan’s cost, add the required repayments and fees, then compare that total with the money you actually receive. To estimate a price trigger, divide the debt balance by the BTC collateral quantity multiplied by the contract’s margin-call or liquidation LTV. These are estimates: the signed agreement’s debt definition, price index, fees, and liquidation rules determine what happens in practice.
What numbers do you need?
Collect these figures from the loan agreement or Key Fact Statement before calculating:
- Net proceeds: the cash, fiat, or stablecoins actually disbursed and available to you.
- Debt balance: the amount the lender counts for LTV, including any interest, overdue interest, or fees that the contract includes.
- BTC collateral quantity: the amount pledged, and whether the lender applies a haircut or other valuation adjustment.
- Thresholds: the separate LTV levels for a margin call and liquidation.
- Price basis: the lender’s index or valuation price, which may differ from a spot price shown elsewhere.
- Repayment terms and charges: payment schedule, interest type, upfront or recurring fees, liquidation costs, and any conversion or repayment fees.
Definitions vary by product. For example, Bybit’s Crypto Loans documentation includes outstanding principal, interest, and overdue interest in its liquidation-price calculation and uses its index price. Use the balance and valuation rules in your own agreement.
How to calculate the loan’s total cost
1. Start with what you receive
A fee withheld from disbursement reduces your usable proceeds. A fee added to the loan balance increases the debt. A fee charged against BTC still has an economic cost, even if it does not reduce cash proceeds. Record these separately so you do not count a charge twice.
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2. Add repayments and required charges
For a fixed, fully amortizing loan, add all scheduled payments over the term and any required charges not already included in those payments. Subtract net proceeds from that total to estimate the dollar or rupee cost of borrowing for that term. Do not add a fee again if it is already included in the repayment schedule or an all-inclusive APR.
For a variable-rate loan, calculate separate estimates under clearly stated rate assumptions. The final cost can change if the rate changes.
3. Use APR to compare, not replace, the schedule
APR can combine interest and certain fees, but disclosure rules and provider calculations differ by jurisdiction. Check the agreement or key fact statement for what the APR includes and what you must still pay separately. Pledg says its Key Fact Statement contains the all-inclusive APR and repayment schedule, and takes precedence over the website summary; its calculator examples are illustrative. See Pledg’s pilot page and its calculator.
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How to estimate the margin-call or liquidation price
LTV is the debt balance divided by collateral value. With a fiat-denominated debt and BTC collateral, the basic relationship is:
LTV = debt balance ÷ (BTC quantity × BTC price)
Rearranging for the BTC price at a specified trigger LTV gives:
Trigger price = debt balance ÷ (BTC quantity × trigger LTV)
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Enter the LTV as a decimal: 80% is 0.80. Use the margin-call LTV to estimate a margin-call price, and the liquidation LTV to estimate a liquidation price. CoinCorner also defines LTV as loan value divided by collateral value; its published definitions are specific to its own product. See CoinCorner’s loan definitions.
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If the debt is $20,000, collateral is 1 BTC, and the contract’s liquidation threshold is 80% LTV, the arithmetic is $20,000 ÷ (1 × 0.80) = $25,000 per BTC. This is an illustrative calculation, not a lender offer or a guaranteed execution price.
Example when the debt grows
If contractually counted interest or another included amount raises the balance to $20,500, the estimate becomes $20,500 ÷ (1 × 0.80) = $25,625 per BTC. A higher balance means the trigger is reached at a higher BTC price, all else equal.
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These examples assume fiat debt, fixed BTC collateral, and a threshold applied directly to the same price basis. They do not model fees, collateral haircuts, price gaps, operational delay, or a lender’s particular liquidation process.
Why an estimate can differ from what happens
Interest and other counted amounts
As interest accrues, the numerator in the LTV calculation can rise. Some providers also count overdue interest or specified fees. Bybit’s published formula expressly includes principal, outstanding interest, and overdue interest.
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Price index and execution
A lender can trigger action using its index price rather than a retail exchange’s displayed spot price. Fast market moves may also cause execution at a different price from a calculated threshold. Bybit states that actual prices can be affected by market fluctuations and lists a 2% liquidation fee for the cited Crypto Loans product.
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Margin call, grace period, and liquidation are different events
A margin call does not necessarily mean immediate sale of collateral. Providers specify different cure periods and remedies. Bybit describes a 24-hour delayed-liquidation window under stated conditions. CoinCorner describes 72 hours after a 70% LTV margin call before specified liquidation. Lantern describes a 72-hour margin-call grace period and says liquidation may occur above 75% if it expires. These are provider-specific terms, not universal rules.
Partial versus full liquidation
Some lenders may sell only enough BTC to restore a target LTV; others may liquidate enough collateral to repay the debt and interest. Onramp/Arch says partial liquidation may occur at 80% LTV to bring the loan back to 50%, while Bybit’s cited page says collateral is liquidated to repay the loan and interest in full. The loan agreement controls your case.
Custody and collateral handling
Ask who holds the BTC, whether it may be lent or rehypothecated, and what happens if the provider defaults. Lantern says its collateral is held with BitGo in insured cold storage and is not lent out; that statement applies to Lantern’s offering and should not be generalized to other providers.
Provider terms are not interchangeable
The examples below illustrate why the calculation must use the specific product’s agreement. Rates, thresholds, availability, and eligibility can change, and may depend on jurisdiction.
| Provider and scope | Published terms in the cited material | Important qualification |
|---|---|---|
| Bybit Crypto Loans | Liquidation-price formula counts outstanding principal, interest, and overdue interest; cited liquidation fee is 2%. | Its formula uses an index-price basis. The example and fee apply to the cited Bybit product, not all Bitcoin-backed loans. Source |
| CoinCorner | Published definitions list 0.5% or 2% origination fees, 8%–15% interest, warning at 60% LTV, margin call at 70%, and forced liquidation at 80%. | These are CoinCorner-specific published terms and may change. Source |
| Onramp / Arch | Up to 50% origination LTV; 70% margin call; possible partial liquidation at 80% to restore 50%; fixed terms up to two years; penalty-free early repayment. | Onramp says terms vary and the loan agreement confirms the specifics. Source |
| Lantern Finance | Bitcoin maximum LTV 50%; 8% base rate; starting APR 10%, including a 2% upfront fee; 12-month term; 72-hour margin-call period. | Page last updated June 26, 2026. Lantern says liquidation may occur above 75% if the grace period expires; eligibility and jurisdiction can affect rates and availability. Source |
| Pledg India pilot | Starting LTV 50%; 2% origination fee; term up to 12 months; margin call at 70%; liquidation beginning at 80% if uncured; no prepayment penalty. | July 2026 pilot terms are India-specific. The terms page describes rate as credit-policy dependent. Its calculator shows an illustrative 16% flat annual rate and sample ₹2,00,000 loan with ₹17,754 total interest and ₹2,17,754 total payable over 12 months; actual terms are in the Key Fact Statement, and live BTC triggers are estimates. Pilot page · Calculator |
Compare offers on the terms that change your risk
Before choosing between loans, put the following side by side from the relevant agreements and disclosures:
- Net proceeds and total scheduled repayment, including every required fee.
- APR, what it includes, and whether the rate is fixed or variable.
- Starting LTV, margin-call LTV, and liquidation LTV.
- Grace period, cure options, and whether the lender permits additional BTC collateral or partial repayment.
- Whether liquidation is partial or full, and the target LTV after a partial sale.
- Price index, collateral haircuts, liquidation fee, and repayment or conversion costs.
- Custody arrangements and whether collateral can be lent or rehypothecated.
- Term, early-repayment rules, jurisdiction, and eligibility requirements.
A web calculator can help with arithmetic, but it cannot replace the signed terms. Treat any trigger estimate as a planning figure rather than a safe boundary: price movements and platform procedures can affect the outcome.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
