Impermanent Loss Calculator
Compare your LP position against simply holding both tokens unswapped.
How to Use
- Enter the starting price of token A (e.g., ETH price when you deposited).
- Enter the current price of token A (now).
- Enter the starting and current price of token B (e.g., USDC stays at $1).
- Enter the initial deposit in USD (assumed split 50/50 in dollar value at entry).
- Read the IL percentage, the dollar amount, and HODL vs LP side by side.
Calculation Method
For a constant-product AMM (Uniswap v2 style), the IL factor compares LP value to a passive HODL portfolio:
il_factor = 2 × √price_ratio ÷ (1 + price_ratio)
il_pct = (il_factor − 1) × 100 // typically ≤ 0
hodl_value = initial × 0.5 × (A_current ÷ A_initial) + initial × 0.5 × (B_current ÷ B_initial)
lp_value = hodl_value × il_factor
il_dollar = lp_value − hodl_value
- price_ratio
- — ratio of token A's relative price change to token B's.
- il_factor
- — always ≤ 1; equals 1 when both tokens move identically.
- hodl_value
- — what you would have if you had not LPed.
- lp_value
- — what your LP position is worth before trading fees.
Source / Last updated: Constant-product AMM (Uniswap v2) impermanent loss formula. Last reviewed for SmartCryptoCalcs in May 2026.
Examples
Example 1 — ETH/USDC, ETH rallies 50%
ETH goes $3,000 → $4,500, USDC stays $1. Price ratio = 1.5. IL factor = 2 × √1.5 / (1 + 1.5) ≈ 0.9798. IL ≈ −2.02%. On a $10,000 deposit, HODL would be worth $12,500 — your LP is worth ≈ $12,247 (gap = $253). Trading fees over the period need to exceed $253 to break even vs HODL.
Example 2 — ETH/USDC, ETH crashes 50%
ETH goes $3,000 → $1,500, USDC stays $1. Price ratio = 0.5. IL factor = 2 × √0.5 / 1.5 ≈ 0.9428. IL ≈ −5.72%. IL is symmetric in price ratio but the dollar amount differs because the HODL value also shrank. Stable-stable pools (USDC/USDT) avoid this entirely.