Bitcoin Liquidation Calculator

Liquidation occurs when the value of your Bitcoin collateral drops below a lender threshold (the liquidation LTV), and the lender sells BTC to cover the loan. This calculator returns the BTC price that would trigger that sale. Free, no login.

Formula

Liquidation Price = Loan Amount ÷ (BTC Collateral × Liquidation LTV%)

Worked example

With a $50,000 loan, 1 BTC collateral, and 80% liquidation LTV, your liquidation price is $50,000 / (1 × 0.80) = $62,500.

Source

Definitional — rearranging LTV = loan / (collateral × price) to solve for price at the liquidation LTV. Typical liquidation LTV cited in the FAQ is 70–85% (BlockFi historically 80%; some DeFi protocols 75%).

Frequently asked questions

What is Bitcoin liquidation?

Liquidation occurs when the value of your Bitcoin collateral drops below a certain threshold (the liquidation LTV), and the lender automatically sells your BTC to cover the outstanding loan. This protects the lender from losses.

How do I calculate my Bitcoin liquidation price?

Divide your loan amount by (your BTC collateral × liquidation LTV percentage). For example, with a $50,000 loan, 1 BTC collateral, and 80% liquidation LTV, your liquidation price is $50,000 / (1 × 0.80) = $62,500.

Can I avoid Bitcoin liquidation?

Yes. Monitor your LTV ratio regularly, set up price alerts, keep extra collateral ready to deposit, and consider repaying part of your loan if Bitcoin's price is falling. Starting with a lower LTV gives you more buffer.

What is a typical liquidation LTV for Bitcoin loans?

Most Bitcoin lending platforms set liquidation LTV between 70-85%. For example, BlockFi historically used 80%, while some DeFi protocols use 75%. Always check your specific lender's terms.

What happens to my remaining Bitcoin after liquidation?

After liquidation, the lender sells enough BTC to cover your loan plus any fees. Any remaining collateral is typically returned to you, though some platforms may charge additional liquidation penalties.