Borrow Rate Calculator
Calculate interest costs and compare DeFi protocols
Loan Parameters
Borrowing Scenarios
Short-Term Liquidity
Borrow $5k USDC at 4% for 1 week = $3.85 interest. Cover gas for NFT mint. Cheaper than selling ETH and tax. Repay from profits same week.
Leverage Farming
Borrow $20k at 6% to farm at 40% APR. Net 34% = $6,800 annual. Interest $1,200. Net gain $5,600/year if held.
Stablecoin Arbitrage
Borrow $50k DAI at 3.5%. Supply to 8% APY protocol. Net 4.5% spread = $2,250 annually. Minimal IL risk on stables.
Bear Market Hold
Borrow $10k against BTC at 8% vs selling. BTC drops 30% but avoid loss. 6 months interest $400. Market recovers. Better than selling low.
Rate Shopping
$15k borrow: Aave 5.2% = $780/year. Compound 6.8% = $1,020. Maker 4.5% = $675. Save $345 annually with Maker. Refinance if rates shift.
Emergency Access
Need $8k urgently, funds locked. Borrow at 7% for 1 month = $46. Better than early withdrawal penalties or selling at bottom.
Frequently Asked Questions
How do rates work?
Variable based on utilization. High demand = higher rates. Updates per block.
Calculate interest?
Amount × APR × Time. $10k at 5% for year = $500. For month: $41.67.
APR vs APY?
APR simple, APY compound. 10% APR = 10.52% APY daily compound.
Lowest rates?
Varies by asset. Generally Aave/Compound competitive. Rates change constantly.
Reduce costs?
Borrow stables (cheaper). Use rewards. Low utilization times. Refinance. Use L2s.
Quick repay?
Pay only for time used. Per block interest. 1 day = 1/30th monthly. Repay early saves.
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