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Impermanent Loss Calculator

See the impermanent loss a price move causes LPs.

How it is calculated

The tool uses the standard constant-product formula for a two-token pool with equal weights. First it turns the percentage change in the price ratio into a multiplier: r = 1 + change % ÷ 100. Then impermanent loss = (2 × √r ÷ (1 + r) − 1) × 100. The result is the pool position's value compared with simply holding the same two tokens, shown as a negative percentage. Enter how much one token's price moved relative to the other since you deposited, so a rise and an equal-ratio fall give the same loss. A change of 0 gives 0.00%. A change of -100% or below makes no sense and returns nothing. The formula leaves out trading fees, rewards and gas costs, which are what can offset the loss.

Worked example

One token doubles in price against the other since you deposited, a change of 100%. Step 1: r = 1 + 100 ÷ 100 = 2, shown as 2.00x. Step 2: √2 is about 1.4142, so 2 × 1.4142 ÷ (1 + 2) = 0.9428. Step 3: 0.9428 − 1 = -0.0572, which the tool shows as -5.72%. The pool position is worth about 5.72% less than just holding the two tokens would have been. A fall of 50% (r = 0.50) gives the same -5.72%.

Try this example →

Common mistakes

  • Entering the change in one token's dollar price when the other token also moved. The formula needs the change in the ratio between the two tokens.
  • Expecting a loss of 100% to be possible or a drop to -100% to be accepted. The tool needs a ratio above zero, so use a figure like -99 to see an extreme fall.
  • Assuming a gain of 100% and a loss of 50% differ. They are the same ratio move in opposite directions and give the same -5.72%.
  • Treating the figure as money lost. It is a percentage against holding, and fees earned can still leave the provider ahead overall.
  • Using the result for pools with uneven weights or concentrated ranges. The tool covers only the standard equal-weight constant-product case.

About this calculator

Impermanent loss is the gap between the value of assets held in an automated market maker (AMM) liquidity pool versus simply holding those same assets in a wallet, caused when the price ratio between the two pooled tokens changes after deposit. Because AMMs like Uniswap use a constant-product formula to keep pools balanced, a price move causes the pool to automatically rebalance — selling the appreciating asset and buying more of the depreciating one — which leaves liquidity providers (LPs) with less of the winning asset than if they'd simply held it.

The loss is called 'impermanent' because it only becomes realized if the LP withdraws while the price ratio is skewed; if prices return to the original ratio, the loss disappears. LPs and yield farmers calculate it before committing funds to a pool to judge whether the trading fees and any liquidity-mining rewards they'll earn are likely to outweigh the expected impermanent loss from the pair's volatility.

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