How to use Impermanent Loss Calculator
Enter the relative price change of the pair (or token A vs B move). Read estimated impermanent loss versus holding. Fees and incentives are separate inputs in your head — not auto-credited here.
Example: ETH doubles in a 50/50 pool
You provide liquidity to a 50/50 ETH/USDC pool and ETH's price doubles relative to USDC (price ratio 2).
- IL = 2 × √ratio ÷ (1 + ratio) − 1
- Ratio 2: 2 × √2 ÷ 3 − 1 = −5.72%
- Ratio 4 (price ×4): −20.00%; ratio 0.5 (price halves): −5.72%
At a 2x move, your pool position is worth 5.72% less than simply holding the two tokens. Trading fees earned by the pool must exceed that gap for liquidity providing to beat holding.
Formula & methodology
Classic 50/50 constant-product IL ≈ 2×√(priceRatio)/(1+priceRatio) − 1, where priceRatio is the new relative price over the old. Negative values mean LP underperformed HODL.
Estimate impermanent loss for AMMs
Providing liquidity is not the same as holding. When one side of a pair outperforms, your pool composition shifts and value can lag a simple hold — that gap is called impermanent loss.
This tool uses a textbook constant-product sketch. Uniswap v3 concentrated ranges, curve stables, and weighted Balancer pools need different math. Treat results as education before you deposit.
Fee APRs can offset IL in calm markets and fail in violent trends. Compare yield claims with staking APR/APY tools and remember token incentives dilute.
All CryptonicTools utilities are free, mobile-first, and require no account.