Calculate total liquidity pool returns including fee APY, reward APY, impermanent loss, and gas costs. Get the full picture of your LP profitability.
Liquidity pool returns are a combination of multiple factors: trading fee income, farming rewards, impermanent loss, and gas costs. Looking at any one factor in isolation gives a misleading picture. A pool advertising 80% APY in farming rewards might actually return 30% after accounting for 40% IL and gas.
This LP Return Calculator aggregates all components into a single net return figure. Enter the fee APY, reward APY, estimated impermanent loss, and gas costs to see your true annualized return from providing liquidity.
Whether you're evaluating a new pool opportunity or assessing an existing position, this calculator gives you the complete, honest picture of LP profitability.
Crypto traders, long-term holders, and DeFi participants benefit from transparent crypto liquidity pool return calculations when planning entries, exits, or portfolio rebalances. Revisit this calculator whenever market conditions shift to keep your strategy grounded in accurate data.
From swing traders timing short-term moves to HODLers tracking long-term gains, accurate crypto liquidity pool return data is essential for disciplined portfolio management. Adjust the inputs above to mirror your actual holdings and market assumptions, then re-run the numbers whenever the landscape shifts.
From swing traders timing short-term moves to HODLers tracking long-term gains, accurate crypto liquidity pool return data is essential for disciplined portfolio management. Adjust the inputs above to mirror your actual holdings and market assumptions, then re-run the numbers whenever the landscape shifts.
DeFi dashboards often show headline APYs that ignore IL and gas costs. This calculator combines all return components — positive and negative — to reveal the true net yield from your LP position. Make decisions based on complete information. Real-time recalculation lets you model different market scenarios quickly, so you can act with confidence rather than relying on rough mental estimates.
Net APY = Fee APY + Reward APY − IL% − (Gas Costs / Position Value × 100). Total Annual Return = Position × Net APY / 100.
Result: 49% net APY ($24,500/year)
Fee APY (25%) + Reward APY (40%) − IL (15%) − Gas (500/50000 = 1%) = 49% net APY. On a $50,000 position, that's $24,500 annualized return. Without accounting for IL and gas, you'd think you were earning 65%.
LP returns have four components: (1) Trading fees — reliable, proportional to volume. (2) Farming rewards — high but decaying, funded by token inflation. (3) Impermanent loss — the cost of price divergence. (4) Gas costs — fixed operational overhead.
A pool showing 200% APY typically shows fee APY + reward APY but ignores IL. If the volatile token moves 3x during the year, IL alone could be 13.4%. The real return is closer to 186% — still good, but the headline number overstates reality.
To maximize net LP returns: choose high-volume pools (more fees), farm incentivized pools early (higher rewards), pick correlated pairs (less IL), and use L2s (lower gas). Rebalance or exit positions when the balance of factors shifts unfavorably.
IL depends on price divergence, which is uncertain. Use historical volatility of the token pair as a guide. For ETH/stablecoin pools, 10-30% IL per year is common during volatile periods. Stablecoin pairs experience near-zero IL.
Usually not at initial levels. Farming rewards are funded by token emissions, which dilute the reward token's value. High initial APYs attract capital, which reduces rewards per dollar. Expect reward APY to decay over weeks to months.
Include gas for: entering the pool, claiming rewards, compounding rewards, rebalancing, and eventually exiting. On Ethereum, these can total hundreds of dollars. On L2s and alternative chains, they're much lower.
Use the metric that includes compounding behavior matching your actual strategy. If you auto-compound daily, use APY. If you claim and hold rewards without reinvesting, fee APR is more appropriate.
Fee and reward APYs are percentage-based and don't change with position size. But gas costs are fixed, so they have a larger percentage impact on smaller positions. Larger positions dilute gas costs more effectively.
It depends on your risk tolerance. 5-15% net APY on stablecoin pairs is solid. 20-50% on volatile pairs compensates for IL risk. Anything over 100% net APY is likely unsustainable and should be treated as temporary.