Impermanent Loss Calculator

About this calculator

Impermanent loss is the gap between the value of assets held in an automated market maker (AMM) liquidity pool versus simply holding those same assets in a wallet, caused when the price ratio between the two pooled tokens changes after deposit. Because AMMs like Uniswap use a constant-product formula to keep pools balanced, a price move causes the pool to automatically rebalance — selling the appreciating asset and buying more of the depreciating one — which leaves liquidity providers (LPs) with less of the winning asset than if they'd simply held it.

The loss is called 'impermanent' because it only becomes realized if the LP withdraws while the price ratio is skewed; if prices return to the original ratio, the loss disappears. LPs and yield farmers calculate it before committing funds to a pool to judge whether the trading fees and any liquidity-mining rewards they'll earn are likely to outweigh the expected impermanent loss from the pair's volatility.

This calculator takes the price change of the pooled asset and returns the estimated impermanent loss versus simply holding.