Health Factor Calculator
Calculate the health factor of a DeFi lending position from collateral value, liquidation threshold and borrowed amount, as used by Aave.
Last reviewed by the Radiatus Cloud team
Calculate the health factor of a DeFi lending position.
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Calculate your lending health factor
The health factor is the metric lending protocols like Aave use to express how safe a borrowing position is. It equals the collateral value multiplied by its liquidation threshold, divided by the borrowed amount. A health factor above one means the position is safe, while a value at or below one means it can be liquidated. This calculator computes it from your collateral value, the liquidation threshold of your collateral, and your debt. A health factor of 1.6, for example, means you have comfortable headroom.
The liquidation threshold is the fraction of collateral value that counts toward covering the debt.
Managing position risk
The health factor rises when you add collateral or repay debt, and falls when collateral prices drop or you borrow more. Because it incorporates the liquidation threshold, it is a more precise safety gauge than a simple collateral ratio. Keeping the health factor well above one, ideally with a wide margin, protects against sudden price moves that could otherwise trigger liquidation and a penalty.
Different collateral assets have different liquidation thresholds, so use the correct one for your position. All calculation happens locally in your browser.
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Frequently Asked Questions
What is a health factor?
It is a lending-protocol metric equal to collateral value times the liquidation threshold divided by debt. Above one is safe; at or below one is liquidatable.
What health factor is safe?
Higher is safer. Many borrowers keep it well above one, often above two, to withstand sudden drops in collateral value.
What raises or lowers the health factor?
Adding collateral or repaying debt raises it, while falling collateral prices or borrowing more lowers it.
What is the liquidation threshold?
It is the fraction of a collateral asset value that counts toward covering debt, set per asset by the protocol based on its risk.
Privacy & Security
Everything runs in your browser; nothing is uploaded.
How to Use
Enter the collateral value, liquidation threshold and borrowed amount.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.