When prices in a constant-product pool move, arbitrageurs rebalance it, leaving providers with more of the token that fell and less of the one that rose. The loss is “impermanent” because it disappears if prices return – but it becomes permanent if you withdraw. Trading fees may offset it.
How to use the Impermanent Loss Calculator
- Token A price at deposit
- Token A price now
- Token B price at deposit
- Token B price now
- Value deposited
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the price of each token when you deposited and now, and the value you deposited.
Tips
- Use the nominal annual rate and pick the compounding frequency your bank or broker states.
- Small differences in return or fees compound into large differences over decades.
- Run the calculation with a cautious, a central and an optimistic return to see the range of outcomes.
- Past returns do not guarantee future returns – nothing here is investment advice.
Common mistakes to avoid
- Comparing an APR with an APY or effective rate.
- Ignoring inflation, taxes and fees when judging a real return.
- Entering a percentage as a decimal (5 instead of 0.05 is correct here).
Inputs explained
| Field | What to enter |
|---|---|
| Token A price at deposit | Amount in your currency |
| Token A price now | Amount in your currency |
| Token B price at deposit | Amount in your currency |
| Token B price now | Amount in your currency |
| Value deposited | Amount in your currency |
What each result means
- Price ratio change = ([Token A price now]÷[Token B price now])÷([Token A price at deposit]÷[Token B price at deposit])
- Impermanent loss = (2×sqrt([Price ratio change])÷(1 + [Price ratio change]) – 1)×100
- Value if you had held = [Value deposited]÷2×([Token A price now]÷[Token A price at deposit]) + [Value deposited]÷2×([Token B price now]÷[Token B price at deposit])
- Value in the pool = [Value if you had held]×(1 + [Impermanent loss]÷100)
- Loss vs holding = [Value if you had held] – [Value in the pool]
Example values
How the main result changes when Token A price at deposit changes and everything else stays at the example values above:
| Token A price at deposit | Impermanent loss (%) |
|---|---|
| 1,000 | -13.4 |
| 1,500 | -5.72 |
| 2,000 | -2.02 |
| 2,500 | -0.41 |
| 3,000 | 0 |
| 4,000 | -1.03 |
Formula
Price ratio change k = (new price A ÷ new price B) ÷ (old price A ÷ old price B)Impermanent loss = 2√k ÷ (1 + k) − 1Worked example
Inputs — Token A price at deposit: $2,000; Token A price now: $3,000; Token B price at deposit: $1; Token B price now: $1; Value deposited: $10,000.
Results — Price ratio change = 1.5; Impermanent loss = -2.02 %; Value if you had held = $12,500.00; Value in the pool = $12,247.45; Loss vs holding = $252.55.
Frequently asked questions
What is impermanent loss?
The shortfall of a liquidity position compared with holding the tokens.
How big can it get?
A 2× price change causes about 5.7% loss; 5× about 25.5%.
Do fees cover impermanent loss?
Sometimes – busy pools with high fees can more than compensate.
What formula does the Impermanent Loss Calculator use?
Price ratio change k = (new price A ÷ new price B) ÷ (old price A ÷ old price B).