Free tools · Crypto

Impermanent loss calculator

Put tokens in a 50/50 liquidity pool? See how much less you have than if you had just held them when prices move, and whether the trading fees you earn cover the gap.

Impermanent loss–
Value if you had held–
Value in the pool–
Loss against holding–
Fees earned (estimate)–
Pool with fees vs holding–

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Why it happens

A 50/50 pool keeps equal value in both tokens. When one token rises, traders buy it from the pool, so you end up with less of the winner and more of the other token. Compared with simply holding the two tokens, you have less money: that gap is the impermanent loss. It is "impermanent" because it shrinks again if prices return to where they were, and becomes real when you withdraw.

The formula

With r = the change of token A's price against token B, the pool is worth 2√r ÷ (1 + r) of the held value. If one token doubles against the other (r = 2) the pool holds 94.3 % of what holding would: a loss of 5.7 %. At 3x it is 13.4 %, at 5x 25.5 %. Only the ratio matters: if both tokens rise by the same %, there is no impermanent loss.

Fees on the other side

Pools pay liquidity providers a share of trading fees. The calculator adds a simple estimate, deposit × fee APR × days ÷ 365, so you can see whether fees cover the loss. Real fee income changes with trading volume and the pool's size, and concentrated-liquidity pools behave differently (the loss can be larger), so treat it as a rough guide. Smart-contract risk is not counted at all.

Trading the tokens instead? See the crypto profit calculator.

Questions

What is impermanent loss?

The value a 50/50 liquidity pool position has lost compared with simply holding the two tokens, caused by a change in their price ratio.

How much is impermanent loss at 2x?

About 5.7 %. At 3x about 13.4 %, at 5x about 25.5 %, whichever direction the ratio moves.

Can fees make up for impermanent loss?

Sometimes. If the pool's fee income over your time in it is larger than the loss, you end up ahead of holding; the result line shows which is bigger with your numbers.

Does this work for concentrated liquidity pools?

No. The formula is for full-range 50/50 pools; concentrated positions can lose more and stop earning fees when price leaves the range.

Practise and trade with a plan

See fair value gaps, order blocks and liquidity drawn for you on live charts in ICC Charts, or train your eye in the free Chart Challenge game.

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