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About the Sell vs. Borrow calculator

The Sell vs. Borrow calculator shows the real cost of raising cash from your Bitcoin two ways: selling some of it, or borrowing against it. Selling triggers capital-gains tax and permanently gives up future upside; borrowing keeps every sat while you access the same cash. Enter your holdings, cost basis, the amount you need, and your state to see the tax you'd owe, the interest you'd pay, and which comes out ahead over ten years.

It's free, runs entirely in your browser, and needs no account. Borrowing is modeled at Lygos' all-in 10% APR with non-custodial, DLC-secured collateral — your Bitcoin never leaves the blockchain.

Tax data verified July 2026 against primary sources: 2026 federal capital-gains brackets and NIIT, all 50 state rates (including exclusion states like Arkansas, Wisconsin, and North Dakota, and Washington's excise-tax tiers), Canadian provinces, and 15 international regimes.

Frequently asked questions

Borrowing against Bitcoin generally isn't a taxable event in the US — you're pledging the asset as collateral, not disposing of it. Selling, by contrast, realizes a capital gain and the tax that comes with it. Treatment depends on your facts and jurisdiction; this tool estimates the difference but isn't tax advice.

It depends on your gain (sale price minus cost basis), how long you held, your income, and your state. The calculator applies long-term federal capital-gains rates plus the 3.8% NIIT and your state's rate; switch to short-term for assets held under a year.

Selling has a one-time tax cost; borrowing has a recurring interest cost (10% APR at Lygos). The tool shows the breakeven — how many years of interest equal the one-time tax — plus a 10-year net-worth projection. Borrowing also keeps your BTC, so you retain the upside the sold coins would have had.

Loan-to-value is your loan divided by your collateral's value. Lygos starts at 50% LTV; if Bitcoin falls far enough you may get a margin call to add collateral, and liquidation occurs at 85% LTV. The calculator shows your liquidation price so you can size the loan conservatively.

No. It's free and runs entirely in your browser — no signup, and nothing is stored. You only share details if you choose to start a loan.

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© 2026 Lygos Labs Inc. All rights reserved.

All Systems Operational

This content is for informational purposes only and does not constitute tax, legal, or investment advice. Tax treatment depends on your jurisdiction and personal circumstances; consult a qualified tax advisor.

Borrow against your BTC collateral to obtain cash while maintaining full long-term exposure. Because you are borrowing—rather than disposing of—your assets, this structure allows for liquidity access without the tax consequences commonly associated with a sale. Your collateral remains native BTC and is held in isolation: not commingled, not swapped, and never converted to a wrapped asset.

Risk Warning: Borrowing against cryptocurrency involves significant risks, including but not limited to liquidation risk, market volatility, and potential loss of collateral. Please review all terms and conditions carefully before participating.

Regulatory Notice: Services may not be available in all jurisdictions. Users are responsible for ensuring compliance with local laws and regulations. Lygos does not provide services to residents of certain restricted jurisdictions.