See how much a price change costs you as a liquidity provider in a 50/50 constant-product pool. Enter your deposit and how the two token prices moved, add the trading fees you earned, and compare staying in the pool with simply holding the tokens.
Last updated:
Pool deposit (50/50 constant-product pool)
$
Half goes into each token.
Enter price change as
%
+100 = price doubled, −50 = halved.
%
0 for a stablecoin.
$
$
$
$
Trading fees earned
Fees
%
Pool fee yield shown by the DEX or analytics site.
days
$
Enter your values to see the result.
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How to use the Impermanent Loss Calculator
Name the two tokens and enter the total value you deposited.
Enter the price changes as percentages, or switch to start and current prices.
Add the fees you earned, as a fee APR with days in the pool or as an amount.
Read the impermanent loss and whether the pool beats holding after fees.
Use the table and chart to see the loss at other price moves.
How impermanent loss is calculated
Price ratio change r = (token A price now ÷ at deposit) ÷ (token B price now ÷ at deposit)
Impermanent loss = 2√r ÷ (1 + r) − 1
Value if held = deposit ÷ 2 × A change + deposit ÷ 2 × B change
Value in the pool = deposit × √(A change × B change) = value if held × (1 + impermanent loss)
Break-even fee APR = (value if held − pool value) ÷ deposit × 365 ÷ days
Example: $10,000 in an ETH/USDC pool, and ETH doubles. Holding would be worth $15,000; the pool is worth $10,000 × √2 = $14,142, so the impermanent loss is $858 (−5.72%). Over 90 days you would need a fee APR of about 34.8% to break even.
Impermanent loss reference table
Price change of one token vs the other
Impermanent loss
±10% (1.1× or 0.9×)
0.11% / 0.14%
+25% / −20% (1.25× or 0.8×)
0.62%
+50% / −33% (1.5× or 0.67×)
2.02%
2× / −50%
5.72%
3× / −67%
13.40%
4× / −75%
20.00%
5× / −80%
25.46%
10× / −90%
42.50%
Tips for liquidity providers
Pairs whose prices move together (two stablecoins, or a token and its wrapped version) have little impermanent loss.
Volatile pairs need higher fee income to compensate; compare the break-even APR with the pool's realistic fee yield.
Fee APRs shown by DEX dashboards are usually based on recent volume and change over time.
Smart contract risk, gas costs and token incentives are not included in the calculation.
Frequently asked questions
What is impermanent loss?
Impermanent loss is the difference between the value of your tokens in an automated market maker pool and the value they would have if you had just held them. When one token's price moves relative to the other, arbitrage trades rebalance the pool so you end up with more of the token that fell and less of the one that rose.
What is the impermanent loss formula?
For a 50/50 constant-product pool, impermanent loss = 2√r ÷ (1 + r) − 1, where r is the change in the price ratio of the two tokens. If token A doubles against token B, r = 2 and the loss is 2 × 1.4142 ÷ 3 − 1 ≈ −5.72%.
Why is it called impermanent?
The loss only depends on the current price ratio. If prices return to the ratio at which you deposited, the loss disappears. It becomes permanent when you withdraw while the ratio is different.
Does it matter which way the price moves?
Only the size of the ratio change matters. A 2× rise and a 50% fall of one token against the other both give r values (2 and 0.5) with the same 5.72% impermanent loss.
Do trading fees make up for impermanent loss?
Sometimes. Liquidity providers earn a share of every swap fee. If the fees earned over your holding period exceed the impermanent loss, providing liquidity beat holding. The calculator shows the fee APR you would need to break even.
Does this work for concentrated liquidity or weighted pools?
No. The formula here is for classic 50/50 constant-product pools. Concentrated liquidity positions have larger impermanent loss within their range, and weighted pools (such as 80/20) have smaller loss; both need different formulas.
If both tokens rise, can I still have impermanent loss?
Yes, if they rise by different amounts. Only the relative price matters: if token A rises 60% and token B rises 20%, the ratio changes by 1.6 ÷ 1.2 ≈ 1.33 and you have about 1% impermanent loss even though the position gained value overall.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.