Impermanent Loss Calculator
Calculate impermanent loss for DeFi liquidity pool positions. Understand the risks before providing liquidity on decentralized exchanges.
Impermanent Loss Calculator
Calculate impermanent loss for DeFi liquidity pool positions
💡 This calculator assumes a 50/50 liquidity pool with a stablecoin pair. Impermanent loss becomes permanent only when you withdraw from the pool.
Formula
IL = 2 × √(price_ratio) / (1 + price_ratio) - 1Impermanent loss occurs when the price ratio of tokens in a liquidity pool changes
How to Use
- 1Enter investment — Input your total initial investment in USD.
- 2Set initial price — Enter the token price when you provided liquidity.
- 3Set current price — Enter the current token price.
- 4View impermanent loss — See your impermanent loss percentage and dollar amount.
Frequently Asked Questions
What is impermanent loss?
Impermanent loss occurs when the price ratio of tokens in a liquidity pool changes compared to when you deposited them. The greater the price change, the more impermanent loss you experience.
Why is it called "impermanent"?
It is called impermanent because the loss only becomes permanent when you withdraw your liquidity. If prices return to their original ratio, the loss disappears.
Can impermanent loss be offset?
Yes, trading fees and liquidity mining rewards can offset impermanent loss. Many LPs remain profitable despite impermanent loss due to these additional earnings.
Which pools have the least impermanent loss?
Stablecoin pairs (like USDC/USDT) have minimal impermanent loss since their prices stay close to each other. Correlated asset pairs also experience less IL.
How is impermanent loss calculated?
IL = 2 × √(price_ratio) / (1 + price_ratio) - 1, where price_ratio is the current price divided by the initial price. A 2x price change results in about 5.7% IL.