Crypto Loan Risk Calculator
Calculate liquidation risk and buffer needed for crypto loans with our free tool. Supports INR, USD, EUR, GBP, CNY, JPY, AUD for DeFi borrowing.
Assess risk of liquidation and required buffer based on loan amount, collateral, and LTV.
| Price Drop | LTV Ratio (%) |
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Introduction to Crypto Loan Risk Calculator
The Crypto Loan Risk Calculator by Mama Calculator is a free tool designed for DeFi borrowing users to assess the risk of liquidation and determine the buffer needed to stay safe. By inputting the loan amount, collateral value, quantity, Loan-to-Value (LTV) ratio, liquidation price, and collateral type, you can estimate how much the collateral price can drop before triggering liquidation and how much additional collateral or loan repayment is needed to maintain a safe LTV. This calculator supports global currencies like INR, USD, EUR, GBP, CNY, JPY, and AUD, making it ideal for crypto investors worldwide.
Whether you’re borrowing on platforms like Aave, Compound, or Binance Loans, this tool helps you manage risks associated with crypto price volatility. Use platform presets for quick setup, simulate price drops with the interactive slider, or export results for record-keeping. Combine this with our Impermanent Loss Calculator or Crypto TDS Calculator to optimize your DeFi strategy and tax planning.
How to Use the Crypto Loan Risk Calculator
- Select Language: Choose your preferred language for the interface.
- Select Currency: Choose your currency (e.g., INR, USD, EUR) from the dropdown.
- Select Platform (Optional): Choose a DeFi platform to auto-fill typical LTV values.
- Select Collateral Type: Choose the crypto asset used as collateral (e.g., BTC, ETH).
- Enter Loan Amount: Input the total loan amount borrowed.
- Enter Collateral Value: Specify the current market value of your collateral.
- Enter Collateral Quantity: Input the quantity of the collateral asset.
- Enter LTV Ratio: Input the Loan-to-Value ratio as a percentage (e.g., 50 for 50%).
- Enter Liquidation Price: Input the price per unit at which liquidation occurs.
- Select Safe LTV: Choose or enter a safe LTV threshold for buffer calculations.
- Calculate: Click “Calculate” to see results and a chart of LTV scenarios.
- Simulate: Use the slider to see real-time LTV changes for price drops.
- Export: Download results as a PDF for record-keeping.
Frequently Asked Questions (FAQs)
What is a Crypto Loan Risk Calculator?
A Crypto Loan Risk Calculator estimates the risk of liquidation and buffer needed for crypto loans based on loan amount, collateral value, quantity, LTV, liquidation price, and collateral type, supporting INR, USD, EUR, GBP, CNY, JPY, and AUD.
What is LTV in crypto loans?
Loan-to-Value (LTV) ratio is the loan amount divided by the collateral value, expressed as a percentage. Higher LTVs indicate higher liquidation risk.
How does this calculator work?
Enter loan amount, collateral value, quantity, LTV, liquidation price, collateral type, and currency. The calculator computes the price drop percentage to trigger liquidation and the buffer needed to maintain a safe LTV.
What is liquidation in crypto loans?
Liquidation occurs when the collateral value falls below a threshold, triggering the sale of collateral to repay the loan, often with a fee (e.g., 2%).
How can I avoid liquidation?
Maintain a low LTV (e.g., 25-50%), add collateral, or repay part of the loan if the collateral price drops. Use this calculator to estimate safe buffers.
Is this calculator suitable for DeFi platforms?
Yes, it’s designed for DeFi platforms like Aave or Compound. Select platform-specific presets or input accurate LTV and liquidation price for precise results.
Disclaimer
The Crypto Loan Risk Calculator is provided for informational purposes only and does not constitute financial, tax, or investment advice. Calculations are estimates and may not account for platform-specific fees, interest rates, or market conditions. Cryptocurrency prices are highly volatile, and sudden market changes may affect liquidation risks beyond the calculator’s estimates. Tax laws and liquidation thresholds vary by country and platform. Always consult a qualified financial or tax professional before making investment or borrowing decisions. Mama Calculator is not responsible for any errors, omissions, or financial decisions based on this tool.