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Impermanent Loss Calculator

Estimate impermanent loss for any 50/50 AMM liquidity pool. Compare what your deposit would be worth as a passive HODL versus actively in the pool, before fees. Stress-test scenarios in seconds.

Impermanent loss
-2.020%
HODL value
$12,500
LP value
$12,247
Loss vs HODL
-$253
New LP composition: 2.0412 Token A + 6,123.7244 Token B
Price ratio shift: 1.500x (Token A appreciated relative to the other)

Standard Uniswap V2-style 50/50 constant-product pool. Trading fees not included — real LP returns offset some IL. Concentrated liquidity (V3) and stable pools follow different formulas.

How impermanent loss works

An automated market maker rebalances your two-token position to keep their USD values equal at all times. When one token's price moves relative to the other, the AMM sells some of the appreciating side for the depreciating side — the opposite of what a HODLer would do.

The gap between "value if I'd just held both tokens" and "value of my LP position now" is impermanent loss. It is real money you don't get back unless prices return to their original ratio.

Trading fees can offset IL — sometimes entirely, often not. Use this calculator alongside fee APR estimates from Revert Finance or DeFiLab to estimate net P&L.

Limits of this calculator

  • Standard 50/50 constant-product pools only (Uniswap V2-style).
  • Concentrated liquidity (Uniswap V3) follows a different curve — IL inside the active range can be much larger.
  • Stable pools (Curve, Balancer composable stable) use a different invariant; IL is typically much smaller.
  • Trading fees and reward tokens are not included — you must add your real fee APR estimate.

Related reading

Not financial advice. This calculator is for educational purposes. Always do your own research. DeFi protocols carry smart contract risk regardless of impermanent loss.

Frequently Asked Questions

What is impermanent loss?
Impermanent loss is the difference between holding two assets passively versus providing them as liquidity to an automated market maker (AMM) when their relative prices change. Larger price divergence creates larger impermanent loss.
How is impermanent loss calculated?
For a 50/50 AMM pool with assets A and B, impermanent loss equals 2 × sqrt(price_ratio) / (1 + price_ratio) − 1, where price_ratio is the new price of A relative to B divided by the original ratio at deposit.
Does this calculator account for fees earned?
No. The calculator shows the price-divergence component only. Fees earned from providing liquidity offset impermanent loss and often exceed it in high-volume pools. Compare expected fees against projected IL to decide if a pool is worthwhile.
When does impermanent loss become permanent?
The loss is "impermanent" because it can recover if prices return to entry levels. It becomes permanent when you withdraw liquidity while prices are still diverged. If you hold the LP position long enough for prices to revert, IL approaches zero.