Lending & Borrowing Calculator
Calculate liquidation prices, health factors, and borrowing costs across DeFi protocols
Calculate Lending Position
Lending Position Details
💎 Collateral (Supply)
💳 Borrowed Asset
2.5%
3.8%
75%
5%
What is DeFi Lending?
DeFi Lending allows users to supply crypto assets to earn interest or borrow assets against collateral. Unlike traditional finance, it's permissionless, non-custodial, and automated through smart contracts.
Major protocols like Aave, Compound, and MakerDAOenable over-collateralized lending with billions in total value locked (TVL).
How DeFi Lending Works
Supply Collateral
Deposit crypto assets (ETH, WBTC, stablecoins) into a lending protocol to earn interest.
Borrow Against Collateral
Use your supplied assets as collateral to borrow other tokens up to your Loan-to-Value (LTV) ratio.
Maintain Health Factor
Keep your health factor above 1.0 to avoid liquidation. Monitor price changes and add collateral when needed.
Key Metrics Explained
Health Factor (HF)
The most critical metric for borrowers. It indicates how safe your position is from liquidation.
Loan-to-Value (LTV)
Percentage of collateral value you can borrow. Different assets have different max LTV ratios based on volatility.
Liquidation Price
The collateral price at which your position becomes eligible for liquidation. Always maintain a buffer!
Example: If you borrow $20,000 with 10 ETH collateral (80% threshold), liquidation occurs at $2,500 per ETH.
Major Lending Protocols
Aave V3
Largest Protocol
Compound
Battle-tested
Spark Protocol
MakerDAO
Risk Management Best Practices
Do This
- ✓Maintain health factor above 2.0
- ✓Set price alerts for liquidation prices
- ✓Start with small positions to learn
- ✓Keep reserves to add collateral
- ✓Monitor positions daily in volatility
- ✓Use stablecoins for lower risk
Don't Do This
- ✗Borrow at maximum LTV (no buffer)
- ✗Ignore health factor warnings
- ✗Use recursive lending without experience
- ✗Forget about interest costs
- ✗Panic sell during dips
- ✗Underestimate volatility risk
Important Risk Disclosure
DeFi lending involves significant risk including smart contract vulnerabilities, liquidation risk, and market volatility. Never invest more than you can afford to lose. This calculator is for educational purposes only and not financial advice. Always do your own research.
Related Tools
Learn More About DeFi Lending
Read our comprehensive guide with step-by-step examples, real-world scenarios, and advanced strategies for optimizing your lending positions.