Collateral Ratio Calculator
Calculate the collateralization ratio of a DeFi loan from the collateral value and the borrowed amount, with a liquidation warning.
Last reviewed by the Radiatus Cloud team
Calculate the collateralization ratio of a DeFi loan.
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Calculate your collateralization ratio
In DeFi lending, loans are over-collateralized, meaning you must deposit more value than you borrow. The collateralization ratio is the value of your collateral divided by the value you have borrowed, expressed as a percentage. This calculator computes it and compares it against the protocol liquidation ratio, the threshold below which your collateral can be seized and sold to repay the loan. A 15,000 collateral against an 8,000 debt gives a ratio of 187.5 percent.
A higher ratio means a safer, less leveraged position with more buffer before liquidation.
Avoiding liquidation
Staying well above the liquidation ratio is critical in DeFi, because collateral values can fall sharply and quickly in volatile markets. If your ratio drops to the liquidation threshold, the protocol liquidates part or all of your collateral, often with a penalty. Monitoring your ratio and maintaining a healthy buffer, by adding collateral or repaying debt, protects your position.
The liquidation ratio varies by protocol and collateral type, so use the figure specific to your loan. All calculation happens locally in your browser.
Notes on these estimates
Because the collateral ratio calculator runs entirely in your browser, you can adjust every input and see the results update instantly, with nothing uploaded and no wallet connection required. The figures are estimates based on the values you enter, so use current, accurate numbers for the most useful output, and treat the results as a planning guide rather than financial advice.
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Frequently Asked Questions
What is a collateralization ratio?
It is the value of your collateral divided by the amount borrowed, as a percentage, measuring how over-collateralized a DeFi loan is.
What is the liquidation ratio?
It is the threshold below which the protocol can seize and sell your collateral to repay the loan, often with a penalty.
How do I avoid liquidation?
Keep your ratio well above the liquidation threshold by adding collateral or repaying debt, especially in volatile markets.
Why are DeFi loans over-collateralized?
Because they are typically automated and non-recourse, requiring more collateral than borrowed protects lenders against price drops and defaults.
Privacy & Security
Everything runs in your browser; nothing is uploaded.
How to Use
Enter the collateral value, borrowed amount and liquidation ratio.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.