Loan to Value Calculator
Calculate LTV ratio and max borrowing capacity
Position Details
Current market value of your collateral
Amount you want to borrow or have borrowed
Protocol's maximum LTV (Aave: 80-85%, Compound: 75-82%, MakerDAO: 66-75%)
LTV Scenarios
Conservative Borrowing
$20k collateral, borrow $8k. LTV: 40%. Max allowed: 80%. Using only 50% of capacity. Safe buffer. Collateral can drop 50% before hitting max LTV. Good for long-term.
Max Leverage
$10k collateral, borrow $8k. LTV: 80%. At maximum. No room for price drops. Risky. If collateral drops 1%, exceeds max LTV. Only for experienced traders with active monitoring.
Optimal Balance
$15k collateral, borrow $9k. LTV: 60%. Max: 80%. Using 75% of capacity. Balanced between safety and capital efficiency. Can borrow $3k more. Good for active strategies.
Stablecoin Advantage
$50k USDC, borrow $42.5k (85% LTV). Max: 85%. Stables have higher LTV. No price volatility risk. Only depeg risk. Can use more borrowing power safely than volatile assets.
Price Drop Impact
Started: $30k collateral, $18k loan, 60% LTV. ETH dropped 30%. Now $21k collateral, same loan. LTV jumped to 85.7%. Exceeded 80% max. Need to add $2.5k collateral or repay $1.2k.
Different Asset LTVs
ETH: 82.5% max LTV. WBTC: 75%. LINK: 70%. Stables: 85%. Riskier assets = lower max LTV. Check protocol docs for each asset's specific limits before borrowing.
Frequently Asked Questions
What is LTV?
Loan / Collateral × 100%. $7k loan, $10k collateral = 70% LTV. Lower = safer.
Good LTV level?
Below 50% conservative. 50-70% moderate. Above 70% risky. Max varies by protocol and asset.
LTV vs collateral ratio?
Inverses. 70% LTV = 143% collateral ratio. Lower LTV = higher collateral ratio. Same safety, different perspective.
Max LTV limits?
Aave: 80-85%. Compound: 75-82%. MakerDAO: 66-75%. Varies by asset. Stables higher, volatile assets lower.
Exceed max LTV?
Position at liquidation risk. Add collateral or repay loan to reduce LTV below maximum. Monitor during volatility.
Calculate max borrow?
Max Borrow = Collateral × Max LTV. $10k collateral at 80% = $8k max borrow. Leave buffer for safety.
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