Impermanent Loss Calculator (DeFi Liquidity Pools)
Calculate impermanent loss percentage and net yield for Automated Market Maker (AMM) liquidity pools (Uniswap, PancakeSwap, Curve) based on token price divergence.
What this calculator does
The Impermanent Loss Calculator (DeFi Liquidity Pools) estimates your result instantly from the values you enter, using standard crypto & digital assets formulas. Calculate impermanent loss percentage and net yield for Automated Market Maker (AMM) liquidity pools (Uniswap, PancakeSwap, Curve) based on token price divergence. 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.
About Impermanent Loss Calculator (DeFi Liquidity Pools)
The Impermanent Loss Calculator computes the loss in portfolio value suffered by Automated Market Maker (AMM) liquidity providers when token relative prices diverge, comparing pool value vs. holding (HODL) tokens in a wallet.
Formula & Mathematical Calculation
Price Ratio (k) = Price Ratio After Change / Initial Price Ratio
Impermanent Loss (%) = [ ( 2 × sqrt(k) ) / ( 1 + k ) - 1 ] × 100
Calculation Example
Token A Doubles in Price (k = 2.00 relative to Token B): Impermanent Loss = [ (2 × 1.4142) / 3.00 - 1 ] = -5.72% Impermanent Loss vs. HODLing (Requires > 5.72% trading fee yield to break even!).
Key Benefits
- Calculates exact Impermanent Loss percentage based on AMM Constant Product (x × y = k)
- Compares Liquidity Pool Value vs. 100% HODL Value
- Calculates required trading fee APY needed to offset impermanent loss
- Supports Uniswap v2, Sushiswap, and standard 50/50 liquidity pools
- Essential for DeFi yield farmers
How to Use this Calculator
-
Enter Initial Token Prices & Pool Deposit
Input starting prices for Token A and Token B. -
Enter Projected Future Token Prices
Input anticipated price changes. -
Enter Trading Fee APR Earned (%)
Input pool swap fee rewards. -
Calculate Impermanent Loss
Click Calculate to view net loss vs. HODL and net profit.
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
- Impermanent Loss Calculator (DeFi Liquidity Pools) 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.