Uniswap Impermanent Loss Calculator
Model a fee-free, full-range 50/50 constant-product pool from manual USD prices. Compare the LP with holding the same starting tokens. Preset prices are hypothetical examples, not live quotes; concentrated ranges are not modeled.
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
Curve range: 0.1×–10× on a logarithmic ratio axis. The marker uses your entered ratio.
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 and costs are excluded. This is a shortfall relative to future HODL, not absolute profit or loss on your initial investment.
What is being compared?
The benchmark holds the same starting token amounts outside the pool. The modeled pool starts with equal USD value in each token, follows x × y = k without fees, and is assumed to have been arbitraged to the entered relative prices. Swaps change token quantities; this page does not inspect an actual position or its transaction history.
Formula and units
Let a = future A price / initial A price and b = future B price / initial B price. For initial investment V: HODL = V × (a + b) / 2, modeled LP = V × √(a × b), and relative price change r = a / b.
IL percent = 100 × (2 × √r / (1 + r) − 1)
Dollar shortfall = modeled LP − future HODL. The percentage denominator is future HODL, not V. This fee-free comparison is nonpositive and returns to zero if the relative ratio returns to its initial value, assuming the position remains in this model. That does not undo gas, costs, tax consequences, or losses from both token prices falling.
Use manual scenarios
- Choose an example pair or enter two token labels. Presets do not verify token addresses, a deployed pool, or current prices.
- Enter the combined USD investment and both initial USD prices. The model allocates half the value to each token.
- Enter both hypothetical future USD prices, including a changed stablecoin price if modeling a depeg.
- Read future HODL and LP values alongside their difference. All five numeric inputs must be between 10⁻¹² and 10¹²; a zero-price collapse is outside this calculator’s domain.
Worked examples with a $1,000 initial deposit
Token A doubles, token B stays unchanged: HODL is $1,500; modeled LP is $1,414.21. The $85.79 shortfall is about 5.72% of future HODL, not $57.20 or 5.72% of the initial deposit. The LP still has a positive gross dollar change in this hypothetical scenario.
Token A halves, token B stays unchanged: HODL is $750; modeled LP is $707.11. The relative shortfall is again about 5.72%, but the dollar shortfall is $42.89. Reciprocal ratio changes have equal IL percentages, not equal dollar losses.
Both tokens halve: HODL and modeled LP each become $500. IL is zero even though both lost half their initial USD value. Stablecoin or correlated-pair labels do not remove depeg, contract, liquidity, or market risk.
What must be modeled separately?
- Fee income depends on actual trades, fee rules, liquidity share, and position activity. It is not automatically equal to an advertised APR.
- Gas, entry/exit costs, and changes in the USD value of both tokens affect absolute results. Fees minus an IL percentage is not a dollar-profit formula.
- Uniswap v3/v4 finite-range positions need their bounds and position data. Out-of-range liquidity stops earning swap fees; narrowing a range does not guarantee more realized fee income.
- This calculator neither connects a wallet nor allocates, monitors, or withdraws funds.
Sources: Uniswap v2 returns and constant-product model; Uniswap concentrated-liquidity mechanics.
Frequently asked questions
What is the denominator of the IL percentage?
The comparison is against the future value of the same starting token quantities held outside the pool. IL percent = 100 × (modeled LP value / future HODL value − 1). It is not a percentage loss on the initial deposit.
Does this calculate actual LP profit?
No. It models a fee-free 50/50 constant-product pool after arbitrage aligns its relative price with the entered prices. Absolute profit also depends on token prices relative to the original investment, collected fees, and costs. Fees exceeding the HODL shortfall do not by themselves establish a positive dollar return.
Does this support Uniswap v3 or v4 concentrated liquidity?
No finite price range is modeled. The inputs contain no lower or upper ticks, position liquidity, fee tier, or hooks. Use the result only for the idealized full-range constant-product model; do not treat it as an exact valuation of a v3 or v4 position.
What if both token prices move equally?
Equal percentage changes leave the relative ratio unchanged and modeled IL is zero. Both prices can still fall, reducing the LP and HODL dollar values. A stablecoin label does not guarantee a peg or low risk.
Are the token prices live?
No. Pair presets contain hypothetical example prices. Names are labels and do not verify a token address, chain, pool, or deployment. Enter your own USD prices; this tool does not fetch quotes or connect a wallet.
Can the result apply to another AMM?
Only if its position follows the same fee-free 50/50 constant-product assumptions. A platform name alone does not establish that: other versions may use concentrated liquidity, different curves, weights, hooks, or fees.
Define TradingView Rules with Pineify
Pineify App coding tools require an eligible paid plan. Describe indicator or strategy rules, inspect the generated code, and test with available TradingView data. This calculator does not manage DeFi positions or execute trades.