Impermanent Loss calculator

Designed for AMM v2 (constant-product pools) — this calculation assumes Uniswap v2-style liquidity.

Base token (A)

Quote token (B)

Impermanent Loss: $1.00 (-0.50%)

Interest Earned: $100.00 (50.00%)

Total With Interest: $299.00

Difference Versus Holding: $99.00 (49.50%)

Provide LP • 49.50% better

Before (If Held)

  • Initial Value $200.00
  • Base token value if held $110.00
  • Quote token value if held $90.00
  • Total If Held $200.00

After (Pool + Interest)

  • Future base token quantity 0.904534
  • Future quote token quantity 1.105542
  • Total Value Before Interest $199.00
  • Total With Interest $299.00
HODL (If held)
Provide LP

About base and quote tokens

Base token: the asset that is quoted as the numerator (e.g. ETH).

Quote token: the asset used to price the base token (e.g. USDC).

How this calculation works

This calculator models impermanent loss for AMM v2 (constant-product) liquidity pools. It compares the value of holding the two tokens versus providing them as a liquidity pair, and includes optional staking rewards as simple interest.

  • We assume a constant product k = tokenA * tokenB for the pool. When prices change, token quantities adjust to keep k constant.
  • Impermanent loss represents the difference between pool value and holding both tokens outside the pool.
  • Interest is modelled as simple APR on the initial combined value for the selected time period (no compounding).
  • The calculator shows the net result after interest; if the pool+interest value is higher than holding, it suggests providing liquidity.

This calculator supports both pairs of volatile assets (e.g. BTC/ETH) and mixed pairs where the quote is a stablecoin (e.g. ETH/USDC).

Example only — the calculation uses a simplified, linear model without fees, slippage, or concentrated liquidity. Real-world outcomes differ.

AMM Risks and Warnings

AMMs involve several risks. Read carefully and never invest more than you can afford to lose.

  • Impermanent Loss: strong price movements can make providing liquidity yield less than holding.
  • Fees and slippage: large trades or low liquidity increase the real trading costs.
  • Protocol risk: bugs, exploits, or permanent losses in smart contracts can happen.
  • Unmodelled factors: compounding interest, trading fees, and dynamic pool behaviors are omitted.

Do Your Own Research (DYOR): Check audits, liquidity, history of the protocol, and start with small amounts. This is for orientation only and is not financial advice.

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