Impermanent Loss Calculator
Calculate how price changes affect your liquidity pool position vs. simply holding
Pool Details
Split 50/50 between ETH and USDC
What is Impermanent Loss?
Impermanent loss occurs when the price of tokens in a liquidity pool changes compared to when you deposited. The larger the price divergence, the more IL you experience compared to just holding the tokens.
Impermanent Loss
$16.78 lost to IL
LP Position Value
+18.32%
HODL Value
+20.00%
Position Breakdown
Impermanent Loss Reference
IL at common price change levels for a standard 50/50 pool
| Price Change | Impermanent Loss | Value vs HODL |
|---|---|---|
| -90% | -42.50% | 57.50% |
| -75% | -20.00% | 80.00% |
| -50% | -5.72% | 94.28% |
| -25% | -1.03% | 98.97% |
| +0% | 0.00% | 100.00% |
| +25% | -0.62% | 99.38% |
| +50% | -2.02% | 97.98% |
| +100% | -5.72% | 94.28% |
| +200% | -13.40% | 86.60% |
| +300% | -20.00% | 80.00% |
| +400% | -25.46% | 74.54% |
IL Severity
Moderate IL. Some loss compared to holding, but reasonable for high-fee pools. Ensure trading fee APR exceeds 1.4% for the period.
Trading Fees Matter
LP positions earn trading fees which can offset impermanent loss. High-volume pools often generate enough fees to make providing liquidity profitable despite IL.
It's "Impermanent"
The loss only becomes permanent when you withdraw. If the price returns to your entry ratio, the impermanent loss disappears. That's why it's called "impermanent."
Stablecoin Pairs
Pairs of stablecoins or correlated assets (like ETH/stETH) experience much less impermanent loss since their price ratio stays relatively constant.
How It's Calculated
Impermanent Loss Formula
Where r = price ratio (new price / initial price)
LP Value Formula
For a standard 50/50 constant-product AMM (Uniswap v2 style)
Learn More About DeFi
Explore our guides on decentralized exchanges, liquidity pools, and DeFi strategies
Read DEX GuideDisclaimer: This calculator provides estimates for standard 50/50 constant-product AMM pools (like Uniswap v2). Concentrated liquidity positions (Uniswap v3), weighted pools, or multi-asset pools have different IL characteristics. Trading fees, farming rewards, and other incentives are not included. This is not financial advice.