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Impermanent Loss Calculator

See how much a liquidity position loses versus holding when the paired assets' prices diverge.

Impermanent loss is the gap between the value of assets held in a liquidity pool and simply holding them, caused by price divergence. For a 50/50 pool it equals 2·√r/(1+r) − 1, where r is the relative price change. Enter how each asset moved and this tool returns the loss — for example, a 2× move is about −5.7%.

Impermanent loss-5.72%How much less the LP position is worth versus just holding the two assets.
Relative price move2.000×Token A's price relative to token B since you deposited.
How it works

When you provide liquidity to a constant-product pool, an automated market maker rebalances your two assets as their prices move. If one asset rises relative to the other, the pool ends up holding less of the winner and more of the loser than if you'd simply held — so the position is worth less than holding. That shortfall is impermanent loss. It becomes permanent only if you withdraw while prices are diverged.

For a standard 50/50 pool the loss depends only on the ratio of the two assets' price changes, r: IL = 2·√r / (1 + r) − 1. The loss is symmetric and grows with divergence — roughly 0.6% at a 1.25× move, 5.7% at 2×, and 25% at 5×. Trading fees earned by the pool offset it, which is why high-volume pools can still be profitable.

This calculator isolates the price-divergence effect so you can weigh it against the fees a pool earns before committing liquidity.

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FAQ

Common questions

What is impermanent loss?
It is the difference in value between keeping assets in a liquidity pool and just holding them, caused by the assets' prices diverging. It reverses if prices return to their original ratio.
What is the impermanent loss formula?
For a 50/50 constant-product pool, IL = 2·√r/(1+r) − 1, where r is the price ratio of one asset relative to the other since deposit.
How much is impermanent loss at 2×?
If one asset doubles relative to the other (r = 2), impermanent loss is about 5.7% versus holding.
Why is it called 'impermanent'?
Because the loss only materializes if you withdraw while prices are diverged. If the price ratio returns to where you started, the loss disappears.
Do fees offset impermanent loss?
Yes. Liquidity providers earn trading fees, which can offset or exceed impermanent loss in high-volume pools. This tool shows the loss side only.
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