Crypto & Digital Assets

Crypto Impermanent Loss Calculator

Estimate impermanent loss for a liquidity provider from the price change between the pooled tokens.

What this calculator does

The Crypto Impermanent Loss Calculator estimates your result instantly from the values you enter, using standard crypto & digital assets formulas. Estimate impermanent loss for a liquidity provider from the price change between the pooled tokens. Calculations run in your browser, so nothing you type is sent to a server, and the output is an estimate for planning rather than financial advice.

Crypto Impermanent Loss Calculator

Result

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Impermanent Loss

About Crypto Impermanent Loss Calculator

The Crypto Impermanent Loss Calculator has one numeric control, Price Ratio, defined by the form as new price divided by old price. It substitutes that positive ratio into the equation shown on the page and displays one output, Impermanent Loss, to three decimal places. A ratio of one represents no relative price change and produces zero percent, while ratios above or below one produce a negative result from the implemented expression.

The shipped form does not expose separate old-price and new-price controls, so explanatory content treats their quotient only as the single Price Ratio entry. It also has no token quantities, pool weights, fee yield, rewards, protocol data, or net-return output. The calculation is limited to the displayed ratio equation, and the callback rejects a Price Ratio at or below zero before showing the result.

Formula & Mathematical Calculation

Impermanent Loss (%) = [2 × √r ÷ (1 + r) − 1] × 100

The variable r is the single Price Ratio entered in the form, defined as new price divided by old price. The callback takes the square root of r, doubles that value, divides by one plus r, subtracts one, and multiplies by 100 for the displayed percentage. Price Ratio must be greater than zero; otherwise the callback shows an inline error and does not display the result. A ratio of 1 makes 2 × √1 ÷ 2 − 1 equal zero, while any supported positive ratio is evaluated by the same sequence.

Calculation Example

Example: Enter the one available numeric control, Price Ratio, as 2. The calculator sets r = 2 and substitutes it into [2 × √r ÷ (1 + r) − 1] × 100. This gives [2 × √2 ÷ 3 − 1] × 100 = −5.719095…%. The shipped formatter rounds the single output to three decimal places, so the result label displays Impermanent Loss: -5.719 %. This example uses only the positive ratio required by the callback. It does not treat the ratio’s new-price and old-price components as separate form controls; the actual shipped interface contains only Price Ratio and returns only Impermanent Loss.

Key Benefits

  • Evaluates the displayed ratio equation from one real numeric input.
  • Reports the signed equation result as one percentage output.
  • Formats Impermanent Loss to three decimal places.
  • Requires no invented token quantities, separate price controls, or protocol data.

How to Use this Calculator

  1. Enter Price Ratio
    Provide new price divided by old price in the one numeric field; the value must be greater than zero.
  2. Check the Price Ratio meaning
    Use 1 for no relative change, 2 for a doubling, or 0.5 for a halving.
  3. Confirm the Price Ratio
    Before selecting Calculate, confirm that the Price Ratio field contains new price divided by old price and that the entered ratio is greater than zero.
  4. Calculate
    Select Calculate to view the single Impermanent Loss percentage output.

Assumptions & Limitations

What the calculation assumes

  • Every value you enter is treated as an exact, known amount.
  • Rates and contributions are assumed to stay constant for the whole period unless the form asks for them separately.
  • Results use standard financial formulas and ignore fees, penalties and promotional terms that are not entered above.
  • Inflation, tax changes and market volatility are not modelled unless a field for them is provided.
  • Amounts are unit-agnostic: results are returned in the same currency you enter.

What it does not cover

  • Crypto Impermanent Loss Calculator produces estimates for education and planning, not a quote, offer or professional advice.
  • Real-world outcomes differ when fees, taxes, rounding rules or provider-specific terms apply.
  • Local regulations and tax rules vary by country and change over time; verify current rules for your jurisdiction.
  • Figures are only as accurate as the inputs you supply — check them before acting on the result.
  • For decisions with lasting financial impact, confirm the numbers with a qualified professional.

Frequently Asked Questions

The shipped form accepts one Price Ratio, defined as new price divided by old price, and displays one Impermanent Loss percentage. It does not accept token quantities, pool weights, fee yield, rewards, protocol parameters, or separate price controls.

Price Ratio must be greater than zero because the equation takes its square root and uses one plus the ratio as a denominator. The shipped callback rejects zero and negative entries with an inline validation message.

The callback evaluates two times the square root of Price Ratio divided by one plus Price Ratio, then subtracts one and multiplies by 100. Positive ratios other than one make this implemented expression produce a negative percentage.

The shipped form contains one Price Ratio field defined as new price divided by old price and one Impermanent Loss output. Separate old-price and new-price fields are absent, so the calculation uses their entered quotient rather than two controls.

Free to use, no account needed. Calculations run in your browser, so nothing you type is sent to a server. Results are estimates — how we build and check our calculators.