Uniswap Impermanent Loss Calculator
Calculate impermanent loss for any Uniswap-style 50/50 liquidity pool. Enter your token pair, investment amount, and price changes to see exactly how much IL affects your position.
Pool Parameters
ETH + USDC combined
HODL vs Liquidity Pool Comparison
| Strategy | ETH | USDC | Total Value |
|---|---|---|---|
| HODL (Just Hold) | $714.29 | $500.00 | $1,214.29 |
| Provide Liquidity | Rebalanced by AMM | $1,195.23 | |
| Impermanent Loss | -$19.06 (-1.57%) | ||
IL vs Price Ratio Curve
Impermanent Loss Reference Table
IL at common price ratio changes for a 50/50 pool (fees not included):
| Price Change | Impermanent Loss |
|---|---|
| 1.25x | -0.62% |
| 1.50x | -2.02% |
| 1.75x | -3.79% |
| 2x | -5.72% |
| 3x | -13.40% |
| 4x | -20.00% |
| 5x | -25.46% |
Initial Token Allocation (50/50 Split)
Fees earned from trading activity are not included in this calculation. Actual LP returns = pool fees − IL.
What is Uniswap impermanent loss?
Impermanent loss (IL) is the difference in value between providing liquidity to a Uniswap-style automated market maker (AMM) pool and simply holding the same tokens in your wallet. When you deposit tokens into a 50/50 liquidity pool, the AMM continuously rebalances your position as prices change. This rebalancing means you end up with more of the cheaper token and less of the expensive one compared to just holding.
The loss is called "impermanent" because if prices return to their original ratio, the loss disappears. However, if you withdraw while prices have diverged, the loss becomes permanent. Trading fees earned by the pool can offset IL, but for volatile pairs the loss can exceed fee income.
How the Uniswap IL formula works
For a constant-product AMM (x × y = k), impermanent loss depends only on the relative price change between the two tokens. The formula is:
Where Pr is the price ratio change = (future price ratio) / (initial price ratio). When Pr = 1 (no relative price change), IL = 0. The further Pr moves from 1 in either direction, the larger the impermanent loss.
How to use this calculator
- Select a token pair from the dropdown or type custom token names. Popular pairs like ETH/USDC, WBTC/ETH, and SOL/USDC are pre-loaded with approximate prices.
- Enter your total investment in USD. This is split 50/50 between Token A and Token B, matching how Uniswap V2 pools work.
- Set initial prices for both tokens at the time you entered (or plan to enter) the pool.
- Set future prices to model different scenarios. The calculator instantly shows IL percentage, dollar loss, and a full HODL vs LP comparison.
Impermanent loss examples
Example 1: ETH doubles against USDC
You deposit $1,000 into an ETH/USDC pool when ETH = $3,500. If ETH rises to $7,000 (2x), the price ratio change is 2x and IL ≈ −5.72%. Your LP position would be worth about $57.20 less than if you had simply held the tokens.
Example 2: ETH drops 50%
If ETH falls from $3,500 to $1,750 (0.5x ratio change), IL is also ≈ −5.72%. IL is symmetric—a 2x increase and a 0.5x decrease produce the same impermanent loss because the formula depends on how far the ratio moves from 1, not the direction.
Example 3: Stablecoin pair
In a USDC/USDT pool, both tokens stay near $1, so the price ratio barely moves. IL is negligible, which is why stablecoin pools are popular for low-risk yield farming.
Tips for minimizing impermanent loss
- Choose correlated pairs: Pairs that move together (e.g. stablecoin/stablecoin or ETH/stETH) have minimal IL because the price ratio stays close to 1.
- Earn enough fees: High-volume pools generate more trading fees, which can offset IL. Check the pool's APR before depositing.
- Use concentrated liquidity: Uniswap V3 lets you set a price range. Narrower ranges earn more fees per dollar but have higher IL if price moves outside the range.
- Monitor regularly: Use this calculator to check your IL periodically and decide whether to stay in the pool or withdraw.
Frequently asked questions
Does this calculator include trading fees?
No. This calculator shows pure impermanent loss from price divergence. In practice, you also earn a share of trading fees from the pool. Your net return = fees earned − IL. If fees exceed IL, providing liquidity is profitable.
Does this work for Uniswap V3 concentrated liquidity?
This calculator models the standard 50/50 constant-product formula used by Uniswap V2 and full-range V3 positions. Concentrated liquidity positions in V3 have amplified IL within their price range. For concentrated positions, IL can be significantly higher.
Can impermanent loss be positive?
No. IL is always zero or negative. When the price ratio changes, the AMM rebalancing always results in less value than holding. IL = 0 only when the price ratio is unchanged.
What happens if both tokens change price equally?
If both tokens increase or decrease by the same percentage, the price ratio stays at 1x and IL = 0. IL only occurs when the relative price between the two tokens changes.
Does this work for SushiSwap, PancakeSwap, and other AMMs?
Yes. Any AMM that uses the constant-product formula (x × y = k) with a 50/50 pool has the same IL math. This includes SushiSwap, PancakeSwap, Trader Joe, and most Uniswap V2 forks.
Disclaimer: This calculator is for educational and informational purposes only. It does not account for trading fees, gas costs, concentrated liquidity ranges, or multi-asset pools. DeFi and liquidity provision involve significant risk including smart contract risk and total loss of funds. Do your own research and consider consulting a qualified financial advisor.
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