Impermanent Loss Calculator

Enter initial token amounts, initial prices, and current prices for a two token liquidity pool position. Impermanent loss measures how much providing liquidity underperforms simply holding the same tokens when prices diverge. Example: fifty fifty ETH and USDC pool when ETH doubles produces IL even though total pool value rose. Constant product pools on Uniswap V2 style AMMs follow x times y equals k invariant. When price ratio doubles, IL near five point seven percent before fees on fifty fifty pool. Five x price move produces roughly twenty five percent IL. Liquidity providers on volatile pairs during trend regimes often experience IL that exceeds fee income for months until volume spikes or mean reversion occurs. Model break even fee APR as IL percent divided by expected pool share of fees. Before depositing into volatile pair pool estimate fee APR required to break even on IL at your expected price divergence using IL output plus pool volume data from analytics dashboard. Pool share of total liquidity determines fraction of fee income accruing to your LP position relative to competing providers in same pool contract.

Review impermanent loss percentage, value if held versus value in pool, and fee income needed to break even on IL. IL increases with price divergence between paired assets. Stablecoin pairs show minimal IL. Volatile pairs need substantial trading fees to compensate liquidity providers. Stable pair USDC DAI pools show negligible IL but lower fee APR. ETH BTC pairs show moderate IL with higher fee potential during volatile rotation regimes. Impermanent loss is path dependent: round trip price return to deposit ratio eliminates IL at exit while trend persistence crystallizes IL at withdrawal. Compare LP outcome to holding tokens in cold storage plus selling covered calls on single asset as alternative structured yield approach with different risk profile. Fee tier and pool volume determine whether accumulated fees exceed IL magnitude before withdrawal decision.

Concentrated liquidity positions on Uniswap V3 change the IL profile versus full range V2 style pools modeled here. LP deposits earn fee tier APR that accrues continuously: compare your liquidity share of pool volume against the IL estimate before committing capital. Impermanent loss stays unrealized until you withdraw. Price reversion toward your deposit ratio before exit can reduce or eliminate realized IL. Track pool fee APR and volume trends alongside IL math when timing LP withdrawals.

Use Impermanent Loss Calculator whenever inputs change: after market moves, new contributions, or revised personal assumptions. Bookmark the page for quick reruns without installing software.

Enter initial token amounts, initial prices, and current prices for a two token liquidity pool position. Enter the sample inputs described in How it works to reproduce the scenario step by step.

Adjust one input at a time to see sensitivity. Impermanent Loss Calculator updates instantly so you can stress test optimistic and conservative assumptions before acting.

Reach for Impermanent Loss Calculator when model amm liquidity pool risk when token prices diverge from your entry ratio.. It suits quick what if analysis before trades, allocation changes, or plan updates.

Pair with related tools when the decision spans taxes, liquidity, or multi year projections beyond what one formula captures.

Copying outputs without checking input units or stale market prices is a frequent error with Impermanent Loss Calculator. Confirm tickers, percentages, and dates before acting.

Running a single baseline scenario ignores tail risks. Stress test with conservative inputs and compare against related tools listed below when the decision is material.

Constant product AMM impermanent loss formula. Fifty fifty initial allocation assumed. Does not include fee income, reward tokens, or gas costs. IL formula assumes fifty fifty deposit and constant product curve. Gas costs for enter and exit not included. Fee income must exceed IL for net positive LP outcome. Reward token emissions add separate yield line not modeled here. Withdraw LP position when fee income exceeds cumulative IL if exit timing aligns with portfolio rebalance policy. Impermanent Loss Calculator does not replace personalized advice. Fees, slippage, account specific rules, and behavioral constraints may change real world outcomes.

Compare DeFi staking yields with Staking Real Yield and compounded returns with APY Calculator on portfolios. Use those calculators when impermanent loss calculator alone does not capture the full decision.

Internal links on portfolios.tools help you chain calculators: run Impermanent Loss Calculator first, then validate edge cases with a specialized tool from the related section below.