Impermanent Loss Calculator

1. Enter the total value you deposited into the pool.
2. Enter the price change of each token since you deposited, as a percentage. Use 0 for a stablecoin.
3. Optionally add the fee APR of the pool and the days you have been in it.
4. Read the loss percentage, the holding and pool values, and whether fees make up the difference.

When you add liquidity to an automated market maker such as Uniswap, you deposit two tokens of equal value. Traders then swap against the pool, and the pool keeps its balance by selling whichever token is rising and buying the one that is falling. As a result you end up holding more of the weaker token and less of the stronger one.

Impermanent loss is the gap between what your pool share is worth and what the same tokens would be worth if you had just held them. It is called impermanent because it disappears if prices return to where they were when you deposited. It becomes permanent the moment you withdraw at a different price ratio.

Liquidity providers accept this risk in exchange for a share of trading fees. Whether providing liquidity pays depends on whether those fees exceed the loss. For the profit on a simple buy and sell, the crypto profit calculator is the simpler tool.

A constant-product pool keeps the product of its two token balances fixed, x times y equals k. That rule determines exactly how the pool rebalances as prices move.

If the price of token A is multiplied by a and the price of token B by b, holding is worth V/2 x (a + b) while the pool is worth V x sqrt(ab). Their ratio simplifies to IL = 2 sqrt(r)/(1 + r) - 1 with r = a/b.

1. Turn each percentage change into a multiplier.
2. Value the held tokens at the new prices.
3. Value the pool share as the deposit times the square root of the two multipliers.
4. Add fees as deposit x APR x days / 365 and compare.

You deposit 10,000 into an ETH and USDC pool, 5,000 of each. ETH then doubles while USDC stays at 1. Held, your tokens would be worth 15,000. In the pool, which has sold some ETH on the way up, your share is worth about 14,142.

That is an impermanent loss of about 5.72 percent, or roughly 858 less than holding. If the pool paid a 20 percent fee APR and you stayed a full year, you would earn about 2,000 in fees, leaving you around 1,142 ahead of simply holding.

Bigger moves hurt more. If the token rises fourfold against the stablecoin, the loss grows to 20 percent. If both tokens rise by the same percentage, the ratio does not change and there is no impermanent loss at all.

The loss is symmetric: a 2x rise and a 50 percent fall of one token against the other produce the same percentage. It grows slowly for small moves and quickly for large ones.

Divergence of Prices

Only the change in the ratio between the tokens matters, not the direction of the market as a whole.

Pair Correlation

Pairs that move together, such as two stablecoins or ETH and staked ETH, suffer very little loss.

Fee Income

High-volume pools can pay enough fees to outweigh moderate losses.

Time in the Pool

Fees accumulate with time, while the loss depends only on the price ratio at exit.

Pool Design

Concentrated liquidity amplifies both fees and impermanent loss within the chosen range.

Before Providing Liquidity

Stress-test how far prices could move before fees stop covering the loss.

Reviewing an Open Position

See whether your LP position is ahead of or behind simply holding.

Choosing a Pair

Compare volatile pairs against correlated ones.

Judging a Yield Offer

A headline APR means little until you set it against the likely loss.

1. Looking Only at the APR

High yields often come with volatile pairs and large losses.

2. Comparing with the Deposit Instead of Holding

Your pool can gain in value and still underperform holding.

3. Using This Formula for Concentrated Pools

Uniswap v3 style ranges have larger losses than this model shows.

4. Forgetting Gas and Exit Costs

Deposit, claim and withdrawal fees reduce net returns.

5. Ignoring Reward Token Prices

Farm rewards paid in a falling token can be worth far less than quoted.

It is the value a liquidity provider loses compared with simply holding the two tokens, caused by the pool rebalancing when their prices move apart.

For a 50/50 constant-product pool, IL = 2 x sqrt(r) / (1 + r) - 1, where r is the change in the price ratio between the two tokens.

Because it disappears if prices return to their original ratio. It becomes permanent only when you withdraw at a different ratio.

About 5.72 percent compared with holding. A fourfold move gives 20 percent.

Yes. If the fees earned exceed the loss, providing liquidity beats holding. Add the fee APR and days to check.

Very little, as long as both coins keep their peg, because the price ratio barely changes.

Not exactly. Concentrated liquidity positions have larger losses within their range. This tool models full-range 50/50 pools.

No. Your position can still be up in value; impermanent loss only measures how it compares with holding.

No. The calculation runs in your browser, and nothing you enter is sent anywhere unless you Save a result, which stays on this device only.

• Constant function market maker (Wikipedia).
• Impermanent loss explained (Investopedia).
• Uniswap v2 protocol overview (Uniswap documentation).