Impermanent Loss Calculator
Compare HODL vs LP value for any price change — 100% client-side
Inputs
Results
Impermanent Loss
-2.02%
If HODL
$10,000
If in LP
$9,798
Loss from LP vs HODL
-$202.04
Impermanent loss curve
The curve shows IL across all price ratios (0.2x to 5x). The blue dot marks your current position at 1.50x (+50% price change). Note the asymmetry: IL is worse when prices fall than when they rise by the same ratio.
Quick reference: IL by price multiple
1.25x
-0.58%
1.5x
-2.02%
2x
-5.72%
3x
-13.40%
5x
-25.46%
10x
-44.34%
The IL formula for constant-product AMMs: IL = 2√r / (1 + r) − 1, where r = new price / old price. This is the loss relative to simply holding the tokens. Trading fees can offset it — see below.
Fee earnings vs impermanent loss
Fees cover the loss — IL is 2.02%, fees earn 20% APR
About the Impermanent Loss
Impermanent loss (IL) is the loss liquidity providers experience when the price of tokens in an automated market maker pool diverges from their initial ratio. It is called impermanent because if the prices return to the original ratio, the loss disappears — but if you withdraw while prices have diverged, the loss becomes permanent.
This calculator uses the constant-product AMM formula (x·y = k, used by Uniswap V2 and similar DEXes) to compute exactly how much value is lost relative to simply holding the tokens. Adjust the price change slider and deposit amount to see your specific scenario, and use the fee offset calculator to determine when trading fees compensate for the loss.
How to use
- Enter your deposit amount in USD.
- Set the initial price of token A (token B is the reference).
- Drag the price change slider to model the divergence.
- Compare the HODL value vs the LP value to see your impermanent loss.
- Adjust the fee APR to see when fees offset the loss.
Frequently Asked Questions
What is impermanent loss in simple terms? ▾
When you provide liquidity to a pool, the pool automatically rebalances as prices change. If you deposited 1 ETH + 2000 USDC (at $2000/ETH) and the price doubles to $4000, the pool now holds less ETH and more USDC. If you withdraw, you get less ETH than you started with — that difference versus just holding is the impermanent loss.
When is impermanent loss permanent? ▾
If prices return to the original ratio, the loss disappears — hence impermanent. But if you withdraw while prices have diverged, the loss becomes permanent. The decision to hold or withdraw depends on whether you expect prices to converge and whether fees earned exceed the IL.
How do trading fees offset impermanent loss? ▾
Every swap in the pool generates fees distributed to LPs. If the pool has high volume and earns 20% APR in fees, a 5% impermanent loss is more than compensated. The fee offset calculator above shows exactly when fees exceed IL for your scenario.
Is this calculator for Uniswap V2 or V3? ▾
The formula applies to constant-product AMMs (Uniswap V2, SushiSwap, PancakeSwap). Uniswap V3 concentrated liquidity has more complex math — the IL can be much higher for narrow ranges. Use this calculator for V2-style pools.
Is this tool free to use? ▾
Yes! This tool is 100% free. No signup, no credit card, no limits. It's part of Formatho's privacy-first developer toolkit.
Is my data safe? Does this tool send data to a server? ▾
Absolutely. This tool runs entirely in your browser. Your data never leaves your device. Zero server-side processing, zero tracking.