Crypto Lending Calculator
Free Crypto Lending Calculator. Calculate projected lending returns using APY, compounding model, term length, and platform performance fees.
Rates, lock periods, and real payout schedules vary by protocol and platform. Use conservative assumptions for planning.
How to use Crypto Lending Calculator
The Crypto Lending Calculator computes the interest you earn on cryptocurrency you lend or deposit on DeFi protocols or CeFi platforms. Enter your deposit amount, the quoted APY, the term in months, the platform's performance fee and a compounding model (simple, monthly or daily) to project your final balance, gross and net interest, and the annualized net APY.
Use it to evaluate whether depositing crypto on Aave, Compound, or Morpho at a given supply APY generates meaningful returns compared to simply holding. The Platform Performance Fee field deducts the share of interest a platform or vault keeps, so the net final balance shows what actually reaches you. To compare platforms, enter each one's APY and fee in turn and compare the annualized net APY.
What do the inputs mean?
Deposit Amount is the USD value you lend or deposit. Quoted APY is the supply rate the platform advertises; it fluctuates based on utilization rates and is available on the protocol's dashboard. Term is set in whole months, with presets of 3, 6, 12 and 24.
For variable-rate protocols, the calculator uses the current APY as a constant approximation, actual earnings may vary as rates change. Compound interest mode reinvests accrued interest back into the principal each period. There is no borrowing mode or health-factor field: the tool models deposits only, and the performance fee is taken as a share of the interest earned, not of the principal.
How to interpret results correctly
The crypto lending calculator models the lender side only: the interest a deposit earns at the quoted APY over the term, net of the platform performance fee; it does not price borrowing. For borrowers, the key metric is the effective annual borrowing rate, compare this to the expected return from what you are funding with the borrowed capital. If you borrow at 8% APR to earn 15% yield elsewhere, the arbitrage spread is positive. If the funded position yields less than the borrow rate, the position loses money on carry.
The health factor is the most critical lending metric: it represents how close your position is to liquidation. Health factor = (collateral value × liquidation threshold) / borrow value. A health factor of 1.0 means liquidation. Protocol-specific safe thresholds vary but staying above 1.5 provides an adequate buffer for normal volatility. This calculator has no collateral or borrow inputs, so it does not show how far collateral can fall before liquidation; the crypto loan calculator shows that drop for both the margin-call and the liquidation level.
What scenarios can you model?
Collateral loan-to-value planning: before depositing collateral and borrowing, work out the safe borrowing amount, which this deposit-only calculator does not compute. The maximum borrow for a target health factor is collateral value × the protocol's liquidation threshold ÷ that health factor (minimum 1.5), so $10,000 of ETH at an 82.5% threshold and a 1.5 target allows about $5,500. Use the crypto loan calculator for that loan's interest and liquidation level, and this calculator for what the deposited collateral earns at its supply APY.
Interest arbitrage calculation: deposit a stablecoin as collateral, borrow another stablecoin, and redeploy the borrowed funds in a higher-yield protocol. This calculator takes one rate per run, so run it twice with the same amount and term, once with the destination yield as the Quoted APY and once with the borrow APR and a 0% fee, then compare the two Net interest figures; the health-factor buffer is not modelled, so size the borrow on the protocol itself.
What should you check before you act?
- Before taking a crypto-backed loan: 1) Verify the collateral asset's liquidation threshold on the specific protocol (ETH may have 80% LTV on Aave, but only 70% for smaller tokens). 2) Calculate your health factor at current prices and at 30% lower collateral price. 3) Set up price alerts to notify you when health factor drops below 1.5.
- After borrowing: never let health factor drop below 1.2 without actively managing the position. At 1.2, a 5–10% collateral price drop triggers liquidation, and liquidation penalties are typically 5–15% of the collateral, a significant additional loss.
What mistakes make this calculation wrong?
- Borrowing at maximum LTV (health factor near 1.2) and then not monitoring. Crypto collateral can drop 20–30% in a single day. At 80% LTV with ETH collateral, a 25% ETH price drop takes health factor below 1.0 and triggers liquidation even before you can react, especially during volatile overnight moves.
- Using volatile assets as collateral to borrow stablecoins and then deploying the stablecoins into yield strategies without accounting for the margin maintenance cost. If ETH drops 40% and your health factor hits liquidation, you lose the ETH collateral penalty on top of any yield losses from the deployed stablecoins.
What is a realistic range to expect?
Typical lending parameters (2026): Aave v3 ETH collateral: 80% LTV, 82.5% liquidation threshold, 5% liquidation bonus. Compound v3 USDC borrow: 4–8% APR variable. Aave USDC supply yield: 3–6% APY. The typical carry trade spread (borrow ETH-backed stablecoin, lend stablecoin) is 2–5% APY net of borrow costs, with liquidation risk as the primary risk.
Safe health factor benchmarks: 1.5 = conservative (can absorb 25% collateral decline for most LTV ratios). 2.0 = very safe (can absorb 40%+ decline). 3.0+ = over-collateralized with minimal liquidation risk but poor capital efficiency. Most experienced DeFi users target 1.5–2.0 health factor.
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Frequently asked questions
What is a safe LTV ratio for crypto lending?
Most platforms recommend keeping your loan-to-value ratio below 50% to avoid liquidation. At 50% LTV, the collateral price would need to drop roughly 33% before liquidation triggers. Conservative borrowers target 25-35% LTV, giving a larger buffer during volatile market swings.
CeFi vs DeFi lending — which is safer?
DeFi lending (Aave, Compound) is transparent and non-custodial — you keep your keys and can audit the smart contracts. CeFi platforms (Nexo, BlockFi) offer simpler UX but introduce counterparty risk, as seen in the 2022 collapses of Celsius and Voyager. Most risk-conscious users now prefer DeFi with audited protocols.
What happens if my collateral drops below the liquidation threshold?
The protocol or platform automatically sells part (or all) of your collateral to repay the loan. On Aave, a liquidation penalty of 5-10% is applied on top. You lose the liquidated collateral permanently. To prevent this, monitor your health factor and add collateral or repay part of the loan when LTV rises above 60%.
Can I earn interest by lending stablecoins?
Yes. Stablecoin lending typically yields 3-8% APY on DeFi platforms like Aave and Compound, depending on market demand. USDC and USDT are the most liquid. Rates fluctuate based on borrowing demand — during bull markets, rates often spike above 10% as traders borrow to leverage.
How are crypto lending rates determined?
DeFi rates are set algorithmically based on utilization — the ratio of borrowed to deposited funds. When utilization exceeds ~80%, rates increase sharply to incentivize repayment and new deposits. CeFi platforms set rates manually based on their treasury needs and competitive positioning.
Do I pay taxes on crypto lending income?
In the US, interest earned from crypto lending is taxed as ordinary income at your marginal rate (10-37%). The taxable event occurs when you receive the interest, not when you withdraw. Keep records of every interest payment with its USD value at the time of receipt for tax reporting.
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