Crypto & Digital Assets

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.

Impermanent Loss Calculator Results

$0.00

Impermanent Loss vs. HODLing

  • Fee Yield Needed to Break Even —

What This Means

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 the signed impermanent-loss percentage for a supplied positive price ratio.
  • Compares a 50/50 constant-product pool position with holding the paired tokens.
  • Displays the opposite-sign fee-yield threshold that would offset the calculated loss.
  • Requires only the relative Price Ratio (k), without assuming a protocol, deposit amount, or elapsed time.

How to Use this Calculator

  1. Determine the Price Ratio
    Use the relative price ratio after the change divided by the initial relative price ratio.
  2. Enter Price Ratio (k)
    Provide a positive ratio; 1 represents no relative price change.
  3. Calculate Impermanent Loss
    Submit the form to compare the 50/50 pool result with HODLing.
  4. Read the Two Percentages
    Review Impermanent Loss vs. HODLing and Fee Yield Needed to Break Even. The calculator does not estimate actual fees or time-based yield.

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.

Frequently Asked Questions

It is the positive relative price ratio supplied directly to the calculator. A value of 1 means no relative price change; values above or below 1 represent divergence between the paired tokens.

The implementation calculates [(2 × square root of k) / (1 + k) − 1] × 100 and displays the signed percentage to two decimal places.

The calculator displays the opposite sign of the calculated loss as the approximate fee yield needed to offset it. It does not calculate actual pool fees or elapsed-time yield.

Both use the same 50/50 constant-product ratio equation, but this version also reports Fee Yield Needed to Break Even and formats both outputs to two decimal places. The Crypto Impermanent Loss Calculator reports only Impermanent Loss to three decimal places.

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.