Impermanent Loss Calculator
Impermanent loss (IL) occurs when the price ratio of tokens in a liquidity pool changes from when you deposited. The greater the divergence, the more value you lose compared to simply holding. It's "impermanent" because it reverses if prices return to the original ratio — but if you withdraw at a different ratio, the loss becomes permanent.
📉 IL Simulator
IL %
-2.02%
IL $ Loss
-$202
Fees Earned
$493
Net P&L vs HODL
+$291
LP Value
$12,248
HODL Value
$12,500
📊 IL Curve — Price Change vs Loss
This shows how impermanent loss accelerates as price divergence grows. The curve is the same regardless of which direction the price moves — a 2x and 0.5x move produce the same IL.
🧮 The Formula
IL = 2·√(price_ratio) / (1 + price_ratio) − 1
1.25x change
-0.6%
2x change
-5.7%
5x change
-25.5%
💡 Key Insights
✅ When LP Wins
• Prices stay in a tight range (stablecoin pairs)
• High trading volume → fee income exceeds IL
• Prices return to entry ratio before withdrawal
• Token incentives + fees > IL
• High trading volume → fee income exceeds IL
• Prices return to entry ratio before withdrawal
• Token incentives + fees > IL
❌ When HODL Wins
• One token moons (you sell the winner for the loser)
• Low trading volume → fees don't compensate
• Concentrated liquidity with narrow range miss
• Token incentives dump in value
• Low trading volume → fees don't compensate
• Concentrated liquidity with narrow range miss
• Token incentives dump in value