Impermanent Loss Calculator
Calculate the impermanent loss of a liquidity pool position when token prices diverge from your entry. For educational purposes only. Not financial advice.
Results
What is it?
Impermanent loss (IL) is the difference in value between holding tokens versus providing them as liquidity in an AMM pool. When token prices change, arbitrageurs rebalance the pool, leaving LP providers with less of the appreciating asset. IL = 2√k/(1+k) − 1 where k is the price ratio. For educational purposes only — not financial advice.
How to use
Enter the token price when you added liquidity, the current price, and the total USD value deposited. The calculator shows the percentage impermanent loss, the dollar loss versus holding, the current LP position value, and what you would have had if you had simply held the tokens.
Example scenario
Adding $10,000 to ETH/USDC when ETH = $1,000. ETH doubles to $2,000 (price ratio = 2). IL = 2×√2/(1+2) − 1 ≈ −5.72%. LP value = $9,428; HODL value = $15,000 (50% ETH + 50% USDC appreciates with ETH). The LP missed out on $5,572 in gains.
Pro tip
IL is "impermanent" because if prices return to your entry point, IL disappears. However, if you exit while prices are diverged, the loss becomes permanent. Strategies to mitigate IL include: concentrated liquidity positions in narrow price ranges (Uniswap v3), stable/stable pairs (near-zero IL), and ensuring trading fee income exceeds the IL rate over time.