Liquidity Pool ROI Calculator
Combine APR, trading fees, and impermanent loss into a single net DeFi return.
Pool rewards
Trading fees
IL drag
ROI %
Tip: Pair this with the Impermanent Loss calculator to estimate the IL input above accurately for your specific token pair.
How to Use
- Enter your initial deposit in USD (sum of both sides of the pair at entry).
- Enter the pool reward APR — token incentives from the protocol.
- Enter the trading fee APR — your share of swap fees from traders.
- Enter the number of days you stay in the pool.
- Enter an impermanent loss estimate (use our IL calculator for the exact number) and read net return + annualized ROI.
Calculation Method
pool_rewards = initial × (pool_apr ÷ 100) × (days ÷ 365)
trading_fees = initial × (trading_fee_apr ÷ 100) × (days ÷ 365)
gross_yield = pool_rewards + trading_fees
il_amount = initial × (il_pct ÷ 100)
net_return = gross_yield − il_amount
net_pct = net_return ÷ initial × 100
annualized_pct = net_pct × (365 ÷ days)
trading_fees = initial × (trading_fee_apr ÷ 100) × (days ÷ 365)
gross_yield = pool_rewards + trading_fees
il_amount = initial × (il_pct ÷ 100)
net_return = gross_yield − il_amount
net_pct = net_return ÷ initial × 100
annualized_pct = net_pct × (365 ÷ days)
- pool_apr
- — protocol-paid reward rate, often in the protocol's own token.
- trading_fee_apr
- — your share of pool swap fees, depends on volume.
- il_pct
- — how much LP value lagged a 50/50 HODL (positive number, in %).
- annualized_pct
- — scaled to a full year for easy comparison.
Source / Last updated: Standard LP yield decomposition (Uniswap v2 model). Last reviewed for SmartCryptoCalcs in May 2026.
Examples
Example 1 — $10K ETH/USDC pool, 1 year, no IL
Pool APR 15%, trading fees APR 8%, IL 0%. Pool rewards = $1,500. Trading fees = $800. Gross = $2,300, IL = $0. Net = $2,300 (23% ROI). Annualized matches since the period is exactly 1 year.
Example 2 — Same pool but ETH rallies 60% (IL 5%)
Same yields, but ETH moves sharply relative to USDC → IL drag = 5% × $10K = $500. Gross = $2,300, net = $1,800 (18% ROI). You still came out ahead, but you would have done even better holding the original 50/50 split unswapped.
Frequently Asked Questions
APR is the simple annual rate (no compounding). APY assumes you reinvest rewards back into the pool. Most DeFi dashboards display APR; APY is always higher and depends on how often you claim and re-stake.
Bugs or exploits in the pool contract can drain LP funds — even on audited protocols, this has happened repeatedly. Treat any LP deposit as money you could lose entirely. Never use leverage or rent capital to LP.
On Uniswap v2-style AMMs, every swap pays a fixed fee (typically 0.3%) split pro-rata across LPs in the pool. High-volume pairs (ETH/USDC) earn much more in fees than low-volume long-tail pairs.
Single-asset (lending, staking) has no IL because you only hold one token. Dual-asset (AMM LPs) earns higher yields from swap fees but is exposed to IL when the two tokens diverge in price.
Gas to enter/exit (especially on L1 — can be $50+), claim transactions, taxes on harvested rewards (US: ordinary income at receipt), and the opportunity cost of locked capital. Build these in before chasing high APRs.
Related Calculators
Not financial advice. DeFi protocols carry smart contract, custody, and liquidity risks beyond price volatility. Estimates here are illustrative — actual returns depend on protocol-specific parameters that change in real time.
Full disclaimer →