Calculate impermanent loss for liquidity pool positions. Enter the price ratio change to see how much value you lose compared to simply holding both tokens.
Impermanent loss is the silent tax of providing liquidity in automated market makers (AMMs). When you deposit two tokens into a liquidity pool and their relative prices change, you end up with less value than if you had simply held both tokens. The loss is called "impermanent" because it reverses if prices return to the original ratio — but in practice, that often doesn't happen.
This Impermanent Loss Calculator shows you exactly how much value you lose for any given price change. Enter the initial and current price ratio between the two tokens, and the tool computes the IL percentage, dollar amount, and comparison against holding.
Understanding impermanent loss is essential for anyone providing liquidity on Uniswap, SushiSwap, Curve, or any AMM. The fee income you earn must exceed your IL to make liquidity provision profitable.
Crypto traders, long-term holders, and DeFi participants benefit from transparent crypto impermanent loss calculations when planning entries, exits, or portfolio rebalances. Revisit this calculator whenever market conditions shift to keep your strategy grounded in accurate data.
Impermanent loss is the biggest hidden cost for liquidity providers. This calculator quantifies IL for any price movement, helping you assess whether LP fee income is enough to justify the position and when you should exit. Real-time recalculation lets you model different market scenarios quickly, so you can act with confidence rather than relying on rough mental estimates.
IL = 2 × √(priceRatio) / (1 + priceRatio) − 1, where priceRatio = currentPrice / initialPrice. The result is always negative or zero.
Result: -5.72% impermanent loss
When one token doubles in price (ratio = 2), IL = 2×√2/(1+2) − 1 = −5.72%. On a $10,000 position, you would have $572 less than if you simply held both tokens. The LP is worth $14,142 while holding would be worth $15,000.
An AMM maintains a constant product (x × y = k). When external prices change, arbitrageurs trade against the pool to align it with market prices. This process moves your token balances away from what you deposited, always in the direction that minimizes your value relative to holding.
At 1.25x: IL = 0.6%. At 1.5x: IL = 2.0%. At 2x: IL = 5.7%. At 3x: IL = 13.4%. At 5x: IL = 25.5%. At 10x: IL = 42.5%. The loss accelerates with larger price divergences.
Use stablecoin pairs for near-zero IL. Choose correlated asset pairs (like ETH/stETH). Provide liquidity in high-volume pools where fees offset IL. Use concentrated liquidity ranges to boost fee income. Set price alerts to exit before IL becomes too large.
IL occurs because AMMs rebalance your position as prices change. When one token rises, the AMM sells it for the other token to maintain the price curve. You end up holding more of the depreciating token and less of the appreciating one, compared to holding.
It's impermanent only if prices return to the exact ratio at which you entered the pool. In practice, this is rare. If you withdraw at a different price ratio, the loss becomes permanent (realized).
Technically yes, but it's minimal for stablecoin-stablecoin pairs since their price ratio stays close to 1:1. Stablecoin LPs focus primarily on fee income with negligible IL risk.
Every trade in the pool generates fees for liquidity providers. If the cumulative fees earned exceed the impermanent loss, the LP position is profitable overall. High-volume pools generate more fees to offset IL.
IL applies to constant-product AMMs (x×y=k, like Uniswap v2). Different curve shapes (Curve's stableswap, Balancer's weighted pools) have different IL profiles. Concentrated liquidity (Uniswap v3) amplifies both IL and fee income.
Theoretically, if one token goes to zero, IL approaches 100% — you lose your entire position value versus holding. In practice, a 10x price divergence results in about 42% IL.