Impermanent Loss Calculator for Liquidity Pools
If you put two coins in a 50/50 pool and one of them rallies, how far behind is the pool versus just holding?
Guide
What is impermanent loss in a liquidity pool?
Impermanent loss is the difference between coins sitting in a 50/50 liquidity pool and those same coins if you had simply held them. The pool is not empty. When one coin's price runs, the pool sells some of the winner and buys more of the laggard. You end up with less of the coin that did well, so the bag is worth less than a plain hold.
It is called “impermanent” because the gap can shrink if prices come back. It becomes a real, locked-in gap the moment you withdraw. Trading fees can offset it. This calculator does not add fees.
Impermanent loss is the gap between a 50/50 constant-product pool and simply holding the same starting amounts. Think of 1 ETH at $3,000 plus $3,000 of a stablecoin. If ETH later trades at $4,500, holding both would be worth $7,500. The pool rebalances as the price moves, so it holds a bit less ETH and a bit more stablecoin. That pool is worth about $7,348 — roughly 2% behind holding, not 50% gone. A 2× move is about 5.7% behind holding. A 5× move is about 25.5% behind. The pool still has value. Fees from traders can close that gap in a busy, range-bound pool, and this page leaves fees off on purpose. Withdrawing is what crystallizes the comparison. Until then the gap moves with price. This is not a Uniswap v3 range tool, and it is not a forecast that the coin keeps going.
Example
Impermanent loss example: 1 ETH and $3,000 after a 50% rally
Match this on the sliders: 1.0 token A, $3,000 stablecoin, deposit price $3,000, price now $4,500.
- You deposit
- 1 ETH + $3,000
- ETH later
- $4,500
- If you had held
- $7,500
- Pool value
- ~$7,348
- Behind holding
- ~2%
- Fees in this board
- None
You are still up in dollars versus the $6,000 you put in. You are behind versus holding. That is the whole point of this calculator: the farm rate on a website is not the same as a hold.
| Price move | Behind holding (50/50) |
|---|---|
| 1.25× | ~0.6% |
| 1.50× | ~2.0% |
| 2× | ~5.7% |
| 5× | ~25.5% |
Fees
Do liquidity pool fees cover impermanent loss?
Sometimes. If traders keep swapping in the pool, you earn a cut. In a quiet pool with a big one-way move, fees rarely cover the gap. Type the hold comparison first. Then, on a separate sheet, add the fees you actually received. Do not add a headline APY from a farm page — those rates assume the coins sit still.
Limits
What this impermanent loss calculator cannot do
- It will not add trading fees or farm incentives.
- It will not model Uniswap v3 ranges or uneven weights other than what you type.
- It will not pull a live ETH price.
- It will not file tax on a withdrawal.
If you never entered a pool and you just want buy versus sell, use the profit calculator. If you stacked the coins on a Friday schedule first, use DCA, then come back here.
Keep going
Same toolkit, a different question — pick the next calculator.
FAQ
Questions people ask
It is the gap between the value of coins sitting in a 50/50 liquidity pool and the value of those same coins if you had simply held them. The pool is not empty. It just lags a plain hold when one coin's price runs. The gap only locks in when you withdraw.
This page revalues both sides of a constant-product pool after the risky coin's price moves, then compares that pool value to holding. A 2× price move is about 5.7% behind holding, not 50%. Fees are not added in.
No. On a 50/50 pool, a 2× move is about 5.7% underperformance versus holding. The pool still holds value. People mix this up with 'half the money vanished.'
Sometimes. Busy, range-bound pools can earn enough fees to cover the gap. Quiet pools with a big price run usually do not. This calculator does not add fees — keep them on a separate sheet.
It is a real gap versus holding, once you withdraw. Until then it moves with price. If the two coins return to the original ratio, the gap can shrink. Fees you already earned stay earned.
No. This is a 50/50 constant-product pool, like a classic full-range pair. Concentrated ranges can lose more, faster. Do not treat this board as a v3 ticket.
Only if you already understand the hold comparison. A farm rate is not a savings rate. Run this calculator first, then subtract fees you actually earned.
Often yes — withdrawing can be a taxable disposal in many countries. This page is a value comparison, before tax. Talk to someone who files returns if the number is large.