DeFi Loan-to-Value Calculator
In DeFi lending you post collateral and borrow against it, but borrow too much and a price drop triggers liquidation. This calculator takes your collateral quantity and price, the amount borrowed, and the protocol's liquidation threshold, then returns your loan-to-value ratio, health factor, and the collateral price at which liquidation begins. It also shows your remaining borrowing capacity up to the maximum LTV. Threshold percentages are protocol-specific, so you supply them from the protocol's official risk parameters.
Loan-to-value formula
Collateral value = quantity * price
LTV % = borrowed / collateral value * 100
Health factor = collateral value * (liq threshold/100) / borrowed
Liquidation price = borrowed / (quantity * liq threshold/100)
Remaining capacity = collateral value * (max LTV/100) - borrowed
A health factor above 1 is safe; at 1 or below the position can be liquidated. Liquidation price is the collateral price at which the health factor reaches 1.
Things to know
- Maximum LTV and liquidation threshold are per-asset protocol parameters that can change.
- The liquidation threshold is always at or above the maximum LTV, leaving a safety gap.
- Borrowing well below the maximum keeps a buffer against price volatility.
- Accruing borrow interest raises the borrowed amount over time, lowering the health factor.
- Multi-asset collateral baskets use weighted thresholds not modeled in this single-asset tool.
DeFi loan-to-value: frequently asked questions
What is loan-to-value in DeFi lending?
Loan-to-value (LTV) is the ratio of the dollar value you have borrowed to the dollar value of the collateral you posted, expressed as a percentage. An LTV of 50 percent means you borrowed half the value of your collateral. Lending protocols set a maximum LTV and a higher liquidation threshold above which the position can be liquidated.
What is a health factor?
Health factor is a single number summarizing how safe a borrowing position is. It equals collateral value times the liquidation threshold, divided by the borrowed value. A health factor above 1 is safe; at or below 1 the position becomes eligible for liquidation. Higher is safer.
How is the liquidation price calculated?
For a single-collateral position, the collateral price at which the health factor hits 1 is the borrowed value divided by (collateral quantity times the liquidation threshold). This calculator reports that price so you can see how far your collateral can fall before liquidation.
Where do the threshold percentages come from?
Maximum LTV and liquidation threshold are set per asset by each lending protocol and can change through governance. Take the current values from the protocol's official documentation or risk parameters page and enter them here; they are not universal constants.
Does a lower LTV make me safer?
Yes. Borrowing less against the same collateral lowers your LTV, raises your health factor, and pushes the liquidation price further away. Many borrowers keep a buffer well below the maximum LTV to survive volatility without being liquidated.
Official sources
- U.S. Securities and Exchange Commission: Investor.gov on crypto assets.
- U.S. Commodity Futures Trading Commission: CFTC on digital asset markets.
Reviewed by the CalculatorHub team, edited by James Graham, 17 June 2026. See our methodology.