How is the True Annual Interest Rate calculated?

The True Annual Interest Rate gives you a more complete picture of each path's real cost. For the "Sell Crypto" scenario, it factors in not just the mortgage interest but also the capital gains tax you pay when you liquidate — a hidden cost that traditional rates don't capture. For the Crypto-Backed Mortgage, it accounts for the tax savings you gain by keeping your crypto, which effectively lowers the true cost of borrowing. In most scenarios, the crypto mortgage's true rate ends up significantly lower once those tax benefits are included.