Impermanent Loss Calculator (Liquidity Pools)
Enter the price change of token A relative to token B and your deposit.
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Impermanent Loss Calculator (Liquidity Pools) by TheCalcTools
How the Impermanent Loss Calculator (Liquidity Pools) works
A constant-product pool keeps x × y fixed, so as prices move it sells the rising token and buys the falling one. Compared with simply holding, the pool is worth 2√r ÷ (1 + r) of the held value, where r is the price ratio change.
The loss is ‘impermanent’ because it disappears if prices return to the starting ratio. Trading fees can offset it. Concentrated-liquidity pools (Uniswap v3) magnify both.
The formula
Worked example
Using the default values shown in the calculator:
| Price change of token A relative to B | 100 % |
|---|---|
| Value deposited | $10000 |
| Trading fees earned while in the pool | 3 % |
- If token A doubles against B, impermanent loss is -5.72%.
- 10,000 deposited is worth $14,142.14 in the pool vs $15,000.00 held.
Result:
| Impermanent loss | -5.72% |
|---|---|
| Value if you had just held | $15,000.00 |
| Value in the pool (before fees) | $14,142.14 |
| Pool value with fees | $14,442.14 |
| Pool vs holding after fees | -$557.86 |
Frequently asked questions
How big is impermanent loss if a price doubles?
About 5.72%. At 5× it is about 25.5%.
Sources and further reading
- Uniswap v2 core whitepaper (Adams, Zinsmeister, Robinson 2020)
- Wikipedia: Constant function market maker
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.