Calculate the cost of borrowing crypto from DeFi lending protocols. Enter borrowed amount, borrow APY, and duration to estimate total interest owed on Aave, Compound, and more.
Borrowing from DeFi protocols lets you access liquidity without selling your crypto. But borrowed funds accrue interest every block, and that interest can compound quickly. Understanding the true cost of your DeFi loan is essential for leveraged strategies and avoiding liquidation.
This Borrowing Interest Calculator estimates the total interest you'll owe on a DeFi loan. Enter the borrow amount, current borrow APY, and loan duration to see your interest charges. The tool computes both simple and compound interest, giving you a clear picture of total loan cost.
Whether you're borrowing to leverage, loop, or simply access liquidity, knowing your interest expense is critical for profitability.
Crypto traders, long-term holders, and DeFi participants benefit from transparent crypto borrowing interest calculations when planning entries, exits, or portfolio rebalances. Revisit this calculator whenever market conditions shift to keep your strategy grounded in accurate data.
From swing traders timing short-term moves to HODLers tracking long-term gains, accurate crypto borrowing interest data is essential for disciplined portfolio management. Adjust the inputs above to mirror your actual holdings and market assumptions, then re-run the numbers whenever the landscape shifts.
From swing traders timing short-term moves to HODLers tracking long-term gains, accurate crypto borrowing interest data is essential for disciplined portfolio management. Adjust the inputs above to mirror your actual holdings and market assumptions, then re-run the numbers whenever the landscape shifts.
Borrow APYs fluctuate with market demand. This calculator projects your total borrowing cost at current rates, helping you decide if the leverage or liquidity is worth the interest expense. Real-time recalculation lets you model different market scenarios quickly, so you can act with confidence rather than relying on rough mental estimates.
Simple Interest = Borrowed × Borrow APY × Days / 365. Compound Interest = Borrowed × [(1 + APY/365)^Days − 1]. Daily Cost = Interest / Days.
Result: $1,356 interest owed
At 5.5% APY over 180 days, simple interest = $50,000 × 0.055 × 180/365 = $1,356. Compound interest = $50,000 × (1.000151)^180 − $50,000 = $1,374. The daily cost is approximately $7.53.
Borrowing enables leverage but introduces a persistent cost drain. A 5% borrow rate means your leveraged position must earn at least 5% just to break even. Factor in gas costs and potential liquidation penalties, and the break-even is even higher.
During market stress, everyone borrows stablecoins to deleverage or take short positions. This spikes utilization and borrow rates can jump from 3% to 30%+ in hours. If you're borrowing, these spikes directly increase your costs.
Some protocols offer borrow incentives (reward tokens) that effectively reduce your net borrow cost. If borrow rewards exceed interest charges, you're being paid to borrow — a temporary arbitrage that attracts leverage farmers.
Borrow APY is set by the protocol's interest rate model based on pool utilization. Higher utilization means higher borrow rates. Rates adjust every block to balance supply and demand.
Unpaid interest is added to your debt. If your total debt (principal + interest) grows to exceed your collateral value adjusted by the liquidation threshold, your position can be liquidated.
Variable rates are typically lower but can spike. Stable rates provide predictability but cost more on average. Choose stable for long-term loans where you need certainty; variable for short-term or when rates are low.
Yes — if you earn more on the borrowed funds than you pay in interest. For example, borrowing at 5% to farm at 20% nets 15% (minus risks). This is the basis of leveraged yield farming.
In most DeFi protocols, interest compounds every block (roughly every 12 seconds on Ethereum). This makes the effective rate slightly higher than the quoted APY, though the difference is small.
Tax treatment varies by jurisdiction. In some countries, interest on investment loans may be deductible. In crypto's evolving tax landscape, consult a qualified tax professional for guidance.