ToolImpermanent Loss Calculator
Impermanent loss is the difference in value between providing two tokens to a liquidity pool and simply holding them. It appears when the tokens' prices diverge, and it reverses if they return to their entry ratio.
Enter your deposit and the price change of each token to see your impermanent loss, your liquidity position value versus holding, and the net result once trading fees are included.
Split 50/50 in value across the two tokens.
Keep at 0 for a stablecoin (e.g. USDC).
- Impermanent loss
- -5.72%
- If you had held (HODL)
- $1,500.00
- Liquidity position value
- $1,414.21
- Net position value
- $1,414.21
- Net vs holding
- -$85.79
Formula: with p = (1 + A%) / (1 + B%), value ratio = 2*sqrt(p) / (1 + p), and impermanent loss = that minus 1. Impermanent loss is unrealized: it reverses if the two prices return to their entry ratio, and it only costs you if it exceeds the fees you earn.
How Pool Party helps
Concentrated liquidity earns more fees but needs active rebalancing, which is where most impermanent loss is felt. Pool Party automates that management on Base, so you do not have to adjust ranges by hand. Open the app.
Frequently asked questions
- How do you calculate impermanent loss?
- Impermanent loss compares the value of your pooled tokens to simply holding them. For a 50/50 pool the value ratio is 2*sqrt(p)/(1+p), where p is the exit price ratio of the two assets, and impermanent loss is that figure minus 1. This calculator applies that formula and lets you add the fees you earn.
- Does impermanent loss reverse?
- Yes. Impermanent loss is unrealized while you stay in the pool. If the two token prices return to their entry ratio the loss disappears. It only becomes permanent if you withdraw while the prices have diverged.
- Does this calculator include trading fees?
- Optionally. Toggle "Include trading fees / rewards" and enter a fee APR and the number of days. The net result adds the fees you earn to your position value, which is what actually determines whether providing liquidity beat holding.
- Which pairs have the least impermanent loss?
- Correlated and stablecoin pairs (for example USDC/USDT) have the least impermanent loss because their prices move together. The more two token prices diverge, the larger the impermanent loss.