Ledn-Style Loan Calculator
Estimate borrowing power, monthly interest, total cost, and liquidation trigger price for a crypto-backed loan.
Estimates only. Terms, rates, fees, and risk thresholds vary by borrower, jurisdiction, and market conditions.
How to use this ledn loan calculator
This calculator helps you model a crypto-backed loan similar to the structure many borrowers use with platforms like Ledn: deposit BTC or ETH as collateral, borrow USD or USD-equivalent funds, and monitor your loan-to-value ratio (LTV) over time.
The tool is designed for planning, not prediction. Crypto prices move quickly, so your real borrowing risk can change far faster than your repayment schedule.
What the calculator estimates
- Collateral value: your deposited crypto amount multiplied by market price.
- Maximum loan at starting LTV: estimated borrowing amount based on your selected LTV.
- Origination fee: upfront fee charged as a percent of loan principal.
- Net proceeds: principal minus origination fee.
- Monthly interest: simple monthly estimate from APR.
- Total interest: estimated interest over the full term.
- Liquidation trigger price: collateral price where your selected liquidation LTV is reached.
Understanding key loan inputs
1) Starting LTV
LTV is the ratio between your loan balance and collateral value. Lower starting LTV generally gives more safety buffer. Example: a 50% LTV means a $60,000 collateral position supports roughly a $30,000 loan.
2) APR and term
APR directly affects monthly carrying cost. A longer term with high APR can materially increase total borrowing cost, even if your principal stays unchanged.
3) Liquidation threshold
If collateral price drops enough, LTV rises. When LTV breaches the liquidation threshold, part or all collateral may be sold to repay debt. This is the central risk in crypto-backed loans.
| Input | Conservative Range | Aggressive Range |
|---|---|---|
| Starting LTV | 20% to 40% | 50% to 70% |
| Term | 3 to 6 months | 12+ months |
| Risk Buffer | High cushion to liquidation | Thin cushion to liquidation |
Practical risk management tips
- Target a lower initial LTV to reduce liquidation risk in volatile markets.
- Keep stablecoin or cash reserves available for collateral top-ups.
- Recalculate your position frequently as BTC/ETH prices change.
- Avoid borrowing the maximum available amount unless absolutely necessary.
- Compare interest cost against alternative financing options.
Example scenario
Suppose you post 1 BTC at $60,000, borrow at 50% LTV, and pay a 13.4% APR over 12 months with a 2% origination fee. You would estimate a $30,000 loan, around $600 origination cost, and approximately $335 monthly interest (simple estimate). Your liquidation trigger price depends on the threshold you choose; with an 80% threshold, the trigger is significantly above zero and should be monitored continuously.
Final thoughts
A ledn loan calculator is most useful when it helps you make conservative decisions before taking on debt. Model several downside cases, not just a base case. If a sudden 20% to 30% price drop would force a margin action you cannot cover, reduce your LTV or avoid borrowing.
This page is educational content and not financial, tax, or legal advice.