Impermanent Loss Calculator
Estimate how a 50/50 AMM liquidity position fares versus simply holding after a price change (impermanent loss; fees excluded).
Results
Fill in the inputs and click Calculate.
- Price Ratio r
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- Hold Value
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- Pool Value
- –
- Gap vs Holding
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- Gap vs Holding %
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Risk disclaimer
A simplified model without fees, slippage or share changes; no return is promised here.
What is impermanent loss?
In a constant-product AMM, price moves trigger rebalancing trades that can leave the position worth less than just holding both coins.
If the price returns to the start, the gap disappears — hence “impermanent”. Real market making usually earns fees to offset it.
How to use
- Enter the pool token's price change in % (positive up, negative down).
- Enter the initial total value (default 1,000).
- Click Calculate for hold value, pool value and the gap versus holding.
Formula
- Price ratio r = 1 + change% ÷ 100
- Hold value = initial × r
- Pool value = initial × 2√r ÷ (1+r)
- Impermanent loss = pool ÷ hold − 1
Example
Assume 1,000 initial and the coin doubles (r=2): hold 2,000, pool ≈ 942.8 — about 52.9% less than holding.
Assume the coin halves (r=0.5): hold 500, pool ≈ 942.8 — the pool loses less on the way down.
FAQ
Do fees make it profitable?
Fees scale with volume and can offset or exceed the gap; this page excludes fees and quantifies only the relative shortfall.
Why call it a loss if nothing is lost?
It is a shortfall versus holding, not an absolute loss; judge real returns together with fee income.