Impermanent Loss Calculator

Calculate exactly how much impermanent loss your liquidity position suffers at any price change. Factor in trading fees, compare LP returns against simply holding, and find the breakeven fee APR you need to come out ahead. This calculator uses the standard constant-product AMM formula used by Uniswap v2, SushiSwap, PancakeSwap, and most other decentralized exchanges.

LP Position Calculator

Configure your liquidity pool position below. All outputs update in real time as you adjust the inputs. The calculator assumes a 50/50 constant-product pool (x * y = k).

Pool Fee Tier
IL %
-2.02%
IL $ Loss
-$252
Fees Earned
$616
Net P&L vs HODL
+$364
LP Position Value
$12,863
HODL Value
$12,500
Breakeven Fee APR
8.2%

LP Value + Fees vs HODL

IL Curve — Your Position

Impermanent Loss at Common Price Changes

This table shows impermanent loss at standard price multiples. The "Fees Needed" column shows the annual fee APR required over your chosen time period to fully offset the IL. Notice that IL is symmetric on a ratio basis: a 2x increase and a 0.5x decrease produce the same IL percentage.

Price Change New ETH Price IL % IL $ Loss LP Value HODL Value Breakeven APR

Multi-Pool Comparison

Compare up to three different pools side by side. Each pool can have a different fee tier and APR. The chart shows the net return (after impermanent loss) for each pool at the current price change you set above. This helps you decide which pool tier is most profitable for your outlook.

Pool 1: ETH/USDC 0.3%
Pool 2: ETH/USDC 0.05%
Pool 3: ETH/USDT 1%
Pool 1 (0.3%) Pool 2 (0.05%) Pool 3 (1%)

IL Over Time — How Fees Accumulate

This animated chart shows how your LP position value evolves over a full year. Fee income accrues linearly day by day, while impermanent loss is a function of price divergence. Over time, fees can compensate for IL — or not, depending on the APR. Adjust the price volatility slider to simulate price fluctuation around your target price change.

LP Value (with fees) HODL Value IL Amount

How Impermanent Loss Works

A brief refresher on the mechanics behind impermanent loss. For a deep dive with more visualizations, see our full explainer.

IL = 2 * sqrt(price_ratio) / (1 + price_ratio) - 1

When you deposit tokens into a constant-product AMM (like Uniswap v2), the pool automatically rebalances your holdings as prices move. If ETH doubles in price, the pool sells your ETH for more USDC to maintain the constant product invariant (x * y = k). You end up with more of the depreciating asset and less of the appreciating one. The "loss" is the difference between what your LP position is worth and what you would have had by simply holding both tokens in your wallet.

The loss is called "impermanent" because it disappears if the price ratio returns to what it was when you deposited. However, if you withdraw while the ratio has diverged, the loss is crystallized and becomes very permanent. This is why understanding the relationship between IL and fee income is critical for any liquidity provider. A pool that generates enough fee income to exceed the IL is profitable; one that does not is a net loser compared to holding.

When LP Wins Over HODL
Prices stay in a tight range (stablecoin pairs like USDC/USDT).
High trading volume drives substantial fee income.
Token incentive rewards further boost returns.
Prices return to entry ratio before you withdraw.
When HODL Wins Over LP
One token pumps massively (you sell the winner for the loser).
Low trading volume means fees do not compensate for IL.
Concentrated liquidity ranges are missed entirely.
Reward token dumps, wiping out incentive gains.
1.25x price change
-0.6%
2x price change
-5.7%
5x price change
-25.5%

Learn more about impermanent loss mechanics →

Ready to provide liquidity?
Use the calculator above to estimate your returns, then try these popular DEXs:

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Top Liquidity Pools to Consider

After calculating your IL risk, compare these pools — ranked by historical stability and fee revenue.

Frequently Asked Questions

What is impermanent loss?
Impermanent loss is the difference in value between holding tokens in an automated market maker (AMM) liquidity pool and simply holding those same tokens in your wallet. When the price ratio of the two tokens in the pool changes from the ratio at the time of your deposit, the AMM rebalances your position — selling the appreciating token and buying the depreciating one. This rebalancing means you end up with a less valuable mix of tokens than if you had just held. The loss is "impermanent" because it reverses if the price ratio returns to its original value, but becomes a real, permanent loss if you withdraw while the ratio has diverged.
How do fees offset impermanent loss?
Every time someone trades through your liquidity pool, you earn a share of the trading fee proportional to your share of the pool. These fees accumulate continuously over time, while impermanent loss is a fixed function of the current price ratio. So even if IL is -5% at a given moment, if the pool generates enough trading volume, the cumulative fees earned over weeks or months can exceed the IL, making the LP position net profitable compared to holding. This is why high-volume pools (like ETH/USDC on Uniswap) can be profitable despite meaningful IL, while low-volume pools often are not.
Is impermanent loss always bad?
No. Impermanent loss is one side of the equation; fee income is the other. In high-fee pools with correlated assets (like stablecoin-stablecoin pairs or ETH-stETH), impermanent loss is minimal while fee income can be substantial, making LP positions very profitable. Even in volatile pairs like ETH/USDC, the 0.3% Uniswap fee tier has historically generated enough fees for many LPs to come out ahead. The key is that fee APR must exceed the annualized rate of IL for your specific position. Use the calculator above to find the breakeven point.
What is the worst case for impermanent loss?
The worst case is when one token goes to zero (or effectively zero) relative to the other. In that scenario, the AMM sells all of your appreciating token for the worthless one, and your LP position approaches 100% loss of the failed token's original value. Mathematically, if one token goes to zero, your LP position is worth the square root of zero times the other side — which means you lose roughly 100% of what that token was worth. This is why providing liquidity for highly speculative, low-cap tokens carries extreme risk: rug pulls, exploits, or simple abandonment can wipe out the LP position entirely.
How does concentrated liquidity affect impermanent loss?
Concentrated liquidity (Uniswap v3 style) amplifies both fee income and impermanent loss. By concentrating your capital in a narrower price range, you provide more liquidity per dollar, which earns proportionally more fees — but you also experience more severe impermanent loss if the price moves outside your range. If the price leaves your range entirely, your position converts 100% to the less valuable token and you earn zero fees until the price returns. Narrow ranges can be extremely profitable in ranging markets and devastating in trending ones. This calculator models the simpler v2-style full-range positions; for concentrated liquidity analysis, the core IL formula still applies but is scaled by the concentration factor.

Related Topics

Impermanent Loss Deep Dive LP Math & Formulas Uniswap Liquidity Curve Liquidity Pools Stablecoin Overview