Impermanent Loss Calculator

Impermanent loss calculator for liquidity providers

When you deposit two tokens into an automated market maker such as Uniswap v2, SushiSwap, PancakeSwap or a Balancer pool, the pool continuously rebalances them as prices move. If one token’s price changes relative to the other, you end up holding more of the token that fell and less of the one that rose — and your position is worth less than if you had simply held the two tokens. That shortfall is impermanent loss (also called divergence loss). This impermanent loss calculator works it out for standard 50/50 pools and for weighted pools such as 80/20, then compares it with the trading fees and rewards you earn — which it can also estimate from the pool’s volume, fee tier and TVL.

Enter how much each token’s price has changed, the pool weights, your deposit and the fee APR. You get the loss as a percentage and in money, the value in the pool versus holding, the fee income over the time you stay in, and the break-even APR you would need for fees to cover the loss. A chart plots IL across a wide range of price ratios.

All calculations run in your browser. Results are informational only and not investment advice.

How to use the Impermanent Loss Calculator

1. Enter your Deposit value and choose a Currency.
2. Pick the Pool weights: 50/50 for most AMMs, 80/20 or another split for Balancer-style pools, or Custom.
3. Enter the Token A price change and Token B price change since you deposited, in percent. Use 0 for a stablecoin.
4. Enter the Fee + reward APR the pool pays — or choose From volume and enter the daily volume, fee tier and TVL — and the Time in pool in days.
5. Read the impermanent loss, pool vs holding values, fees, net result and break-even APR; check the chart and the reference table.

Impermanent Loss Calculator features

The impermanent loss formula

For a 50/50 constant-product pool, if the price of A relative to B changes by a factor r, the value of the LP position relative to holding is 2√r ÷ (1 + r), so IL = 2√r ÷ (1 + r) − 1. For a weighted pool with weight w on token A it generalises to rw ÷ (w·r + 1 − w) − 1.

Worked example: deposit $1,000 into an ETH/USDC 50/50 pool and ETH doubles (r = 2). Holding would be worth $500 × 2 + $500 = $1,500. The pool position is worth $1,000 × √2 = $1,414.21. Impermanent loss is 1,414.21 ÷ 1,500 − 1 = −5.72%, or $85.79. At a 20% fee APR for a year you would earn about $282.84, more than covering the loss; the break-even APR is 6.07%.

Why it is called “impermanent”

The loss only becomes real when you withdraw. If prices return to the ratio at which you deposited, the loss disappears, while the fees you earned remain. In practice prices rarely return exactly, so treat IL as a real cost of providing liquidity that fees must outweigh.

• Pairs of correlated assets (USDC/USDT, ETH/stETH) have little IL; volatile, uncorrelated pairs have the most.
• The loss is symmetric in ratio terms: a 2× rise and a 0.5× fall give the same 50/50 IL.
• Weighted pools reduce IL on the heavy side: an 80/20 pool behaves more like holding the 80% token.
• Concentrated liquidity (Uniswap v3/v4) magnifies both fees and IL inside your price range; model a range with the concentrated liquidity calculator.

Liquidity pool returns from volume and TVL

A pool’s trading fees are shared by its liquidity providers in proportion to their share of the pool. So the yearly fee return is fee APR = daily volume × fee tier × LP share of the fee × 365 ÷ TVL, and your fees are that APR × your deposit. Example: 1,000,000 of daily volume at a 0.3% tier in a pool with 5,000,000 TVL pays 3,000 a day to LPs, a 21.9% fee APR; a 1,000 deposit (0.02% of the pool) earns about 0.60 a day. Volume and TVL change daily, so use a multi-week average.

Related calculators

Compare with simply staking the token in the staking rewards calculator, model buying over time with the DCA calculator, or work out a trade’s gain with the crypto profit calculator.