To estimate a Bitcoin-backed loan’s cost, add the scheduled repayments and required fees, then compare that total with the money you actually receive. To estimate a price trigger, divide the debt balance counted by the lender by the number of BTC pledged multiplied by the relevant margin-call or liquidation LTV. Those are estimates: the agreement’s balance definition, price index, fees, and liquidation rules determine what happens in practice.
Calculate the loan’s total cost
Start with two figures: your net proceeds and the total amount you must repay. A quoted interest rate alone does not tell you how much the loan costs.
- Find your net proceeds. Record the cash, fiat currency, or stablecoins actually disbursed. If an origination fee is withheld, subtract it from the amount you can use. If a fee is added to the loan balance or charged against your BTC, account for it in the appropriate place.
- Add scheduled payments. For a fixed-payment loan, total every payment due over the term. Add required charges that are not already included in those payments. Do not count a fee twice if it is already included in the schedule or in an all-inclusive APR.
- Compare repayment with proceeds. Subtract net proceeds from the total repayment and required charges to estimate the dollar or other-currency cost for that loan term.
- Model variable rates as scenarios. If the rate can change, calculate totals under separate rate assumptions and label the results estimates rather than guaranteed repayment amounts.
APR can help compare offers, but its inclusions and disclosure rules can vary by lender and jurisdiction. Check the signed agreement or key fact statement for the actual repayment schedule and fees. Pledg, for example, says its Key Fact Statement governs over its website summary and contains the all-inclusive APR and repayment schedule; its calculator example is illustrative. Pledg and its calculator should be read alongside the actual loan documents.
Calculate LTV and the BTC price trigger
Loan-to-value (LTV) is the debt balance divided by the value of the collateral. With a fiat-denominated debt and BTC collateral, the basic calculation is:
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LTV = debt balance ÷ (BTC quantity × BTC price)
The lender may use an index price or apply a collateral haircut rather than the spot price you see on an exchange. The debt balance may also include accrued interest, overdue interest, or fees. Bybit’s published crypto-loan formula, for example, counts principal, interest, and overdue interest and uses its index-price basis. Bybit’s liquidation-price calculation explains its product-specific method.
For a fiat balance, a fixed amount of BTC collateral, and a threshold stated as a decimal, the simple trigger estimate is:
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Trigger BTC price = debt balance ÷ (BTC quantity × trigger LTV)
Use the margin-call LTV to estimate the margin-call price; use the liquidation LTV to estimate the liquidation price. These thresholds are different when a lender sets separate levels.
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Illustrative calculation
Suppose the counted debt is $20,000, the collateral is 1 BTC, and the contract’s liquidation threshold is 80% LTV. The estimated trigger is $20,000 ÷ (1 × 0.80) = $25,000 per BTC. If the counted balance rises to $20,500, the estimate becomes $20,500 ÷ (1 × 0.80) = $25,625 per BTC.
This arithmetic assumes the fiat balance, BTC quantity, and threshold all use the same valuation basis. It does not account for fees, collateral haircuts, price gaps, operational delays, or a lender’s specific liquidation mechanics. Bybit publishes the general formula mechanics, but these example inputs are illustrative, not a lender offer or a tested outcome. Bybit’s formula documentation
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What can change the estimate or the outcome?
- Interest and other counted amounts: As the balance grows, LTV and the estimated trigger price rise. Some products count overdue interest in the balance used for liquidation calculations. Bybit’s formula
- BTC value and collateral quantity: A falling BTC price reduces collateral value and raises LTV. Adding collateral or repaying part of the debt can reduce LTV, subject to the contract’s rules.
- Separate thresholds and grace periods: A margin call does not necessarily mean immediate liquidation. 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 possible liquidation above 75% after it. These are different providers’ terms, not interchangeable rules. Bybit, CoinCorner, Lantern Finance
- Partial or full liquidation: A lender may sell enough collateral to restore a target LTV, or liquidate collateral to repay the loan and interest. Onramp/Arch describes possible partial liquidation at 80% LTV to bring LTV back to 50%; Bybit’s cited crypto-loan page says collateral is liquidated to repay the loan and interest in full. Onramp/Arch, Bybit
- Price index, fees, and execution: A displayed spot price may differ from the lender’s index price. Liquidation, repayment, or conversion fees can reduce any collateral returned. Bybit states a 2% liquidation fee for its cited product and notes that market fluctuations can affect actual prices. Bybit
- Custody and collateral use: Check who holds the BTC, whether it can 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 is Lantern’s provider-specific statement, not a general assurance about Bitcoin-backed loans. Lantern Finance
How published provider terms differ
The following are provider-specific examples from pages available as of October 7, 2026. They are not market averages, and eligibility, jurisdiction, product availability, and signed agreements can affect the terms. Confirm current terms directly before borrowing.
| Provider and scope | Published cost or LTV details | Call, liquidation, or repayment details |
|---|---|---|
| Bybit Crypto Loans | Liquidation price formula counts outstanding principal, interest, and overdue interest. The cited product lists a 2% liquidation fee. | Its page describes a 24-hour delayed-liquidation window under stated conditions and says collateral may be liquidated to repay the loan and interest in full. Bybit |
| CoinCorner | Published origination fees are 0.5% or 2%; interest is 8%–15%. | Its definitions list a warning at 60% LTV, a margin call at 70%, and forced liquidation at 80%; its support page describes its own actions and timing. These are CoinCorner terms only. CoinCorner |
| Onramp / Arch | Up to 50% LTV at origination; fixed terms up to two years. | Its help center lists a 70% margin call and possible partial liquidation at 80% LTV to restore 50% LTV. It says early repayment is penalty-free and that the loan agreement confirms specifics. Onramp / Arch |
| Lantern Finance | Its page, last updated June 26, 2026, lists Bitcoin maximum LTV of 50%, 8% base interest, and starting APR of 10% including a 2% upfront fee. | It lists a 12-month term, 72-hour margin-call period, and possible liquidation above 75% LTV if the grace period expires. Rates and availability can depend on eligibility and jurisdiction. Lantern Finance |
| Pledg India pilot | Its July 2026 pilot page lists 50% starting LTV, a 2% origination fee, and up to 12 months. Its calculator gives an illustrative 16% flat annual rate and, for a sample ₹2,00,000 loan over 12 months, ₹17,754 total interest and ₹2,17,754 total payable; actual rates depend on credit policy and the Key Fact Statement. | It lists a margin call at 70%, liquidation beginning at 80% if uncured, and no prepayment penalty. Its live BTC-price-linked trigger figures are estimates; the Key Fact Statement governs actual terms. Pledg pilot and terms |
Compare offers using the contract, not only the headline rate
Before choosing between loans, put each offer’s actual terms side by side. Use the signed documents to fill in the figures; website calculators can illustrate mechanics but may not establish your final offer.
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- Net proceeds after any fees withheld
- Total scheduled repayment and required charges
- APR and whether the rate is fixed or variable
- Starting LTV, margin-call LTV, and liquidation LTV
- Grace period, cure options, and whether collateral can be added or debt repaid in part
- Whether liquidation is partial or full, and the target LTV after a partial sale
- Price index or valuation basis used to calculate LTV
- Liquidation, repayment, and conversion charges
- Custody arrangements and whether collateral may be lent or rehypothecated
- Term, prepayment rules, jurisdiction, and eligibility
A trigger estimate is not a guaranteed safe price: a sharp market move, differences between spot and index pricing, fees, or the platform’s procedures can change the outcome. Use the agreement’s debt-balance definition and price basis when calculating, and leave room for those practical effects rather than treating one calculated number as a promise.
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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.
