The method
How it is worked out
IL = 2√r ÷ (1 + r) − 1, where r = price ratio change between the two tokens
- r
- (1 + change A) ÷ (1 + change B)
Impermanent Loss Calculator
See how much a liquidity position loses against simply holding when prices diverge, and the fee yield needed to make up for it. The result updates as you type so you can compare scenarios quickly.
Keep in mind
What it leaves out
- Constant-product poolsApplies to 50/50 pools; concentrated liquidity behaves differently.
- RewardsLiquidity-mining tokens can offset losses but carry their own price risk.
- GasEntering and exiting costs are not included.
Use the calculator to compare scenarios rather than as a guaranteed forecast.
About the Impermanent Loss Calculator
See how much a liquidity-pool position loses against simply holding the two tokens when their prices diverge, and the fee yield you need to earn to come out ahead.
How it works and an example to tryShow less
How to use the result
For a constant-product pool the position's value is the deposit times the square root of the product of the two price changes. Holding is worth the deposit times their average. The difference is impermanent loss; fees earned over the period are added to give the net result and a break-even yield.
Example to try
£10,000 deposited where token A rises 50% and B is flat: holding is worth £12,500, the pool position £12,247, a 2% loss of £253. Fees of 12% a year over 90 days earn about £296, so the position is ahead by £43.
Put it to work
Try it on a real situation
Load an example
What moves the result most
Worked out from your figures above. Tap a row to try it.
Who uses it, and when
DeFi liquidity providers, yield farmers and anyone comparing pool fees against holding.
Mistakes worth avoiding
- Only looking at the fee APR and never the divergence loss.
- Applying constant-product maths to concentrated-liquidity positions.
- Forgetting gas costs to enter and exit.
Questions
What does the Impermanent Loss Calculator do?
See how much a liquidity position loses against simply holding when prices diverge, and the fee yield needed to make up for it.
How should I use the result?
For a constant-product pool the position's value is the deposit times the square root of the product of the two price changes. Holding is worth the deposit times their average. The difference is impermanent loss; fees earned over the period are added to give the net result and a break-even yield.
Does TechBullion store the information I enter?
The core calculation or transformation runs in your browser. Normal website security and analytics may still record page-level events, but the tool does not need to create a public record from your inputs.
What mistakes do people make with an impermanent loss calculator?
Only looking at the fee APR and never the divergence loss. Applying constant-product maths to concentrated-liquidity positions. Forgetting gas costs to enter and exit.
Is the result guaranteed?
No. Use the result as a practical check or planning aid and verify important decisions with the relevant primary source, provider or professional advice.
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Results are estimates based on the figures entered, for general information only, and not financial, investment, tax or legal advice. See our terms of use.