AIO.

Tools — Impermanent Loss Calculator

Impermanent Loss Calculator

See how much a liquidity pool underperforms simply holding the two tokens when their price ratio moves — for a standard 50/50 constant-product pool (Uniswap v2 style).

Trade Setup

01
$
02
$
03
$

Results

Impermanent Loss
Price Change
Value if Held
Value as Liquidity
Impermanent Loss ($)

Assumes a standard 50/50 constant-product pool (Uniswap v2 style) with no trading fees earned — real LP returns can offset some or all of this loss.

What is impermanent loss?

Impermanent loss is the difference in value between providing liquidity to a 50/50 pool and simply holding the two tokens outright. It happens because a constant-product pool automatically sells the token that goes up and buys the token that goes down to keep the pool balanced — so if one token's price moves a lot relative to the other, the pool ends up holding less of the winner than you would have by just holding. The loss is "impermanent" because it disappears if the price ratio returns to where it started; it only becomes a permanent, realized loss if you withdraw while the price has diverged. It ignores trading fees earned as an LP, which in an active pool can partly or fully offset it.

Frequently Asked Questions

What causes impermanent loss?
A constant-product AMM (like Uniswap v2) automatically rebalances the pool as the price moves, selling the appreciating token and buying the depreciating one to keep the pool's value constant. This means a liquidity provider ends up with less of the token that went up and more of the one that went down, compared to simply holding both — that gap is impermanent loss.
Why is it called "impermanent"?
Because the loss only exists on paper while the price ratio has diverged from where you deposited. If the price ratio returns to its original level, the loss disappears completely. It only becomes a permanent, realized loss if you withdraw your liquidity while the prices are still diverged.
Does impermanent loss mean liquidity providing is unprofitable?
Not necessarily. This calculator only measures the loss versus holding — it doesn't include the trading fees you earn as a liquidity provider. In pools with high trading volume relative to their size, fee income can outweigh impermanent loss, especially when the two tokens are correlated or move by a similar percentage.
Start 5-Day Free Trial