Impermanent Loss Calculator

Impermanent loss is the difference between holding two tokens in an automated market maker (AMM) liquidity pool and simply holding the same tokens in your wallet. When the two token prices diverge, the pool automatically rebalances and you end up with more of the token that fell and less of the token that rose, leaving your position worth less than if you had just held. It is called impermanent because the loss shrinks back toward zero if the prices return to their original ratio.

For a 50/50 constant-product pool the loss depends only on the price ratio multiplier k, where k is token A's price change factor divided by token B's. The formula is IL = 2 times the square root of k, divided by (1 plus k), minus 1. The result is always zero or negative: it is zero when both tokens move together (k equals 1) and grows more negative as the prices diverge. For example, one token doubling against the other (k equals 2) gives about a 5.72% loss, and a 4x divergence gives a 20% loss.

Enter the percentage price change of each token since you deposited. Use 100 for a token that doubled, -50 for one that halved, and 0 for a stablecoin that stayed flat. Add your total deposit value in dollars to also see the loss in dollar terms, with a side-by-side comparison of holding versus staying in the pool. The deposit field is optional, so you can leave it blank to see only the percentage.

No. This calculator measures only the price-driven loss versus holding. In a real pool you also earn trading fees and sometimes liquidity-mining rewards while your funds are deposited, and those earnings can partly offset, fully cover, or even exceed the impermanent loss. To judge whether providing liquidity was profitable, compare your fees and rewards against the impermanent loss shown here, and remember to account for gas costs.

The loss only becomes permanent when you withdraw your liquidity while the price ratio is still different from when you entered. If you stay in the pool and the two token prices drift back to their original ratio, the impermanent loss returns to zero. Because the loss is symmetric, a token rising 2x against the other and a token falling to half produce the same percentage loss.

No. This tool provides an estimate of price-driven impermanent loss for educational purposes and is not financial, investment, or tax advice. Actual results depend on the specific pool, fee tier, token volatility, and when you enter and exit. Do your own research and consider consulting a qualified professional before providing liquidity.