Impermanent Loss Calculator
Calculate how much value you could lose by providing liquidity in a DeFi pool compared to simply holding your assets. Enter your initial deposit values and current market prices to see the potential impermanent loss.
Results
Calculate to see resultsImportant: This calculator uses the constant product formula (x*y=k). Impermanent loss occurs when the pool's ratio changes due to price movement. Always check current fee rates as they can offset impermanent loss.
How to Use This Tool:
- Enter the starting prices of your two tokens
- Enter the current market prices
- Input how much of each token you deposited
- Click "Calculate Impermanent Loss" to see results
- Compare the value if held vs. in the pool
When you add ETH and USDC to a liquidity pool on Uniswap, you’re not just earning trading fees-you’re also taking on a hidden risk called impermanent loss. It’s not a glitch. It’s math. And if you don’t understand it, you could lose money even when the price of your tokens goes up.
Imagine this: You deposit 1 ETH and 2,000 USDC into a pool when ETH is $2,000. A week later, ETH jumps to $3,000. You think you’ve made a killing. But when you pull your funds out, you only get 0.8 ETH and 2,400 USDC. That’s $2,400 in value-less than the $4,000 you put in. Where did the rest go? That’s impermanent loss. It doesn’t mean you lost crypto. It means you lost opportunity.
What Is Impermanent Loss, Really?
Impermanent loss happens because of how automated market makers (AMMs) like Uniswap work. They use a formula-x * y = k-to keep the product of two token amounts constant. When one token’s price changes, the pool automatically rebalances to maintain that equation. You end up with more of the token that dropped in price and less of the one that rose.
Here’s the catch: if you’d just held your tokens instead of putting them in the pool, you’d have more of the rising asset. The difference between what you have in the pool and what you’d have if you held is the impermanent loss. It’s called “impermanent” because if the price goes back to where it started, the loss disappears. But in crypto, prices rarely go back. That’s why it often becomes permanent.
According to Stanford researcher Dr. Guillermo Angeris, impermanent loss is the most misunderstood risk in DeFi. Most new liquidity providers assume fees will cover it. Sometimes they do. Often, they don’t.
How an Impermanent Loss Calculator Works
A good impermanent loss calculator does one thing: it shows you the gap between holding and providing liquidity. You plug in:
- The starting price of both tokens
- The current price
- How much of each token you deposited
The tool runs the math based on the constant product formula and tells you the percentage loss. For example:
- Start: ETH $2,000, USDC $2,000 → 1 ETH + 2,000 USDC
- Current: ETH $3,000, USDC $2,000
- Result: -5.7% impermanent loss
That means your $4,000 deposit is now worth $3,772 in the pool, even though ETH is up 50%. Without the calculator, you’d think you’re ahead. You’re not.
Advanced calculators-like the ones from SushiSwap or Amberdata-go further. They add:
- Trading fee estimates based on 24-hour volume
- Volatility projections using 30-day price history
- Scenario simulations for 7-day, 30-day, or 90-day price moves
One user on Reddit saved $18,000 by using SushiSwap’s calculator before adding liquidity to an ETH/SHIB pair. The tool showed a projected 38% loss over two weeks. He walked away. The pair crashed 60% two days later.
Free vs. Paid Calculators: What’s the Difference?
There are three kinds of calculators out there:
1. Basic Web Tools (Free)
Tools like impermanentloss.com are easy to use. You type in two numbers and get a percentage. Great for beginners. But they ignore fees. That’s a big flaw. In stablecoin pairs like USDC/DAI, fees often outweigh impermanent loss. In volatile pairs like ETH/WIF, fees barely cover 10% of the loss.
A CoinDesk review found these tools are 23% less accurate because they don’t factor in fees. If you’re using one, you’re making decisions blindfolded.
2. Exchange-Native Calculators (Free)
Uniswap, SushiSwap, and Balancer have built-in tools. These are better. They pull real-time trading volume and fee rates. SushiSwap’s calculator, for example, uses live data from its own pools. It’s accurate for their platform-but useless if you’re looking at another exchange.
They also don’t let you simulate past events. You can’t test “What if I added liquidity during the March 2023 bank crash?”
3. Institutional Platforms (Paid)
Amberdata, Kaiko, and similar platforms charge $1,500+/month. They’re overkill for most people. But they’re powerful:
- Backtest your strategy against 3 years of historical data
- Forecast volatility using machine learning models
- Compare 20+ pools side-by-side
Forty-three of the top 100 crypto hedge funds use these tools. They don’t just avoid loss-they actively profit from it by targeting low-risk pools with high fee yields.
When Impermanent Loss Is Worth It
Not all impermanent loss is bad. Sometimes, it’s the price of earning 10% APR.
Stablecoin pairs (USDC/DAI, FRAX/USDT) have near-zero impermanent loss because their prices don’t move. Fees from trading between them? Often 4-8% APR. That’s a win.
Even ETH/USDC can be profitable if volatility is low. During the 2023 banking crisis, users who used SushiSwap’s calculator to enter ETH/USDC pools earned 4.2% APR with less than 0.5% impermanent loss. They made money. Others who ignored the tool and jumped into high-volatility pairs lost 22% on average.
Rule of thumb: If the token pair has a 30-day volatility above 40%, skip it unless you’re a pro. If it’s below 15%, and fees are above 3%, it’s probably safe.
How to Use a Calculator Like a Pro
Here’s how to make these tools work for you-not against you:
- Start with stablecoins. Use USDC/DAI or FRAX/USDT. Low risk, steady fees.
- Check the 30-day volatility. Use CoinGecko or DeFi Llama. If it’s over 40%, avoid.
- Run the calculator. Input your deposit amount and current price. If loss is over 10%, ask: “Will fees cover this in 30 days?”
- Compare pools. Don’t just pick the one with the highest APY. A 15% APY on a volatile pair with 12% loss isn’t better than a 6% APY with 1% loss.
- Use real-time tools. Avoid static calculators. Use SushiSwap’s or Uniswap’s built-in tool before you confirm a transaction.
One trader in Bristol told me he only adds liquidity after checking the calculator on his phone. He waits for price dips. If the loss is under 3% and fees are above 4%, he deposits. He’s made 18% over six months with zero losses.
What Calculators Can’t Tell You
Impermanent loss calculators are powerful-but they’re not crystal balls.
They can’t predict:
- Black swan events (like the 2022 Terra collapse)
- Exchange hacks or protocol exploits
- Regulatory crackdowns
They also assume prices move linearly. In reality, crypto prices spike and crash unpredictably. During the March 2023 bank crisis, free calculators were off by up to 40%. That’s why experts like Dr. Georgios Konstantopoulos warn: “Most free tools create false confidence.”
And remember: impermanent loss is opportunity cost. If ETH goes from $2,000 to $3,000 and back to $2,000, your loss disappears. But if it goes to $3,000 and stays there? You lost the chance to hold more ETH. That’s real.
What to Do Next
Don’t just read about this. Use it.
Go to SushiSwap’s liquidity tool or Uniswap’s pool page. Pick a pair you’re considering. Input your numbers. See the loss. Then check the fee APY. If the fee doesn’t cover the loss within 30 days, don’t deposit.
Try this: Open a small position-$100 in USDC/DAI. Watch the calculator. See how the loss changes over a week. You’ll learn more in 7 days than from 10 blog posts.
DeFi isn’t about chasing the highest yield. It’s about understanding risk. The best liquidity providers aren’t the ones who guess right. They’re the ones who calculate before they commit.
As Vitalik Buterin said in 2022: “The mathematical certainty of impermanent loss makes these calculators fundamentally important.” Ignore them, and you’re gambling. Use them, and you’re investing.
Is impermanent loss always a loss?
No. Impermanent loss is only a loss if the price doesn’t return to its original level. If the asset price reverts, the loss disappears. But in crypto, prices rarely go back. That’s why it often turns into a real loss. The key is to think of it as opportunity cost-not just a number.
Do all liquidity pools have impermanent loss?
Yes, but the size varies. Pools with two stablecoins (like USDC/DAI) have almost no impermanent loss because their prices don’t move. Pools with volatile assets (like ETH/WIF) can have losses over 20% in a week. The more the price diverges, the bigger the loss.
Can trading fees cover impermanent loss?
Sometimes. In stablecoin pairs, fees often exceed the loss-making it profitable. In volatile pairs, fees rarely cover the loss unless the price swings wildly and often. Always run a calculator that includes fee projections. Don’t assume fees will save you.
Which calculator should I use?
For beginners, use the built-in calculator on SushiSwap or Uniswap. They’re free, accurate for their platform, and update in real time. Avoid standalone tools that don’t include fee data. If you’re managing large amounts, consider Amberdata-but only if you’re already experienced.
Is it better to hold or provide liquidity?
If you believe a token will rise sharply, holding is better. If you think it will trade sideways with steady volume, liquidity provision can earn you extra income. The calculator helps you decide. If the projected loss is higher than the fee APY over your time horizon, hold. If fees cover the loss, provide liquidity.
Can I lose more than I deposited?
No. You can’t lose more than what you put in. Impermanent loss reduces your total value, but you still own your share of the pool. The worst-case scenario is you get back less than you deposited. You won’t owe money.
How often should I check my impermanent loss?
Check it weekly if you’re in a volatile pair. If you’re in stablecoins, monthly is fine. Many experienced providers set alerts in their wallets. Some use tools like MetaMask’s experimental feature that shows loss estimates before you confirm a transaction.
Savan Prajapati
Just hold ETH. Done.
Evelyn Gu
I just want to say how much I appreciate this post-seriously, I’ve been in DeFi for two years and I still didn’t fully get how impermanent loss worked until I read this. It’s not just the math, it’s the emotional trap: you think you’re winning because your ETH went up, but your wallet feels lighter, and you can’t figure out why. I remember putting $5k into ETH/USDC last year, watched ETH go from $2,100 to $3,200, and then pulled out and cried because I had less than when I started. I thought I was smart for getting in early. Turns out I was just bad at math. This calculator thing? Life-changing. I now check it before every deposit, even if it’s just $50. It’s like having a financial therapist who doesn’t judge you for being dumb.
Ben Costlee
Most people treat impermanent loss like a bug in the system, but it’s actually a feature. AMMs exist to provide liquidity, not to make you rich. The fact that you lose opportunity when prices move is what keeps the pools balanced. If you want to bet on price direction, buy the asset. If you want to earn fees, accept that you’re essentially selling insurance. The real mistake isn’t impermanent loss-it’s thinking you’re a trader when you’re just a liquidity provider. I’ve been doing this for four years. I only use stablecoin pairs now. I make 5-7% a year with zero sleepless nights. That’s not glamorous, but it’s sustainable.
Janice Jose
I used to think calculators were for nerds. Then I lost $2k on an ETH/WIF pool because I thought ‘high APY = good’. Now I use SushiSwap’s tool religiously. If the loss is over 5% and fees are under 4%, I walk away. No drama. No FOMO. Just cold, hard numbers. I’ve made more in the last six months with 3% APY stablecoin pools than I did in a year chasing 30% yields. Sometimes boring wins.
Christina Oneviane
Oh wow, so the whole ‘impermanent loss’ thing is just Wall Street’s way of saying ‘we knew you’d fall for this’? Brilliant. I’m just here for the memes and the free tokens, but now I have to do math? What did I sign up for? 🤡
fanny adam
According to the constant product formula x*y=k, the mathematical derivation of impermanent loss is derived from the geometric mean deviation between the price ratio at deposit and withdrawal. The formula for IL = 2 * sqrt(P2/P1) / (1 + P2/P1) - 1, where P1 is the initial price ratio and P2 is the final price ratio, is well-established in academic literature. Any calculator that does not use this exact formulation is mathematically invalid. I have audited three of the top ten tools referenced in this article; two used incorrect coefficients, one misapplied logarithmic scaling. This is not a trivial error-it is systemic. You are being misled by pseudo-scientific tools.
Casey Meehan
Bro, I just use the Uniswap calculator and it tells me ‘-4.2% IL’ and ‘+6.1% fees’ so I’m like ‘yasss’ 😎💰 I don’t need to know the math. I just know I made $300 last week on $2k. Math is for people who don’t have a phone. 📱🔥
Tom MacDermott
Wow. Another ‘DeFi beginner guide’ that pretends this isn’t just a glorified arbitrage trap for retail sheep. The real story? The top 5% of liquidity providers are hedge funds using proprietary volatility models and front-running bots. You think you’re using a calculator? You’re just feeding data into their algo. The ‘free tools’ are designed to make you feel smart while they extract value. You’re not avoiding loss-you’re just the bait. And now you’re proud of checking a box? Pathetic.
Martin Doyle
You’re all overthinking this. If you’re not making money, you’re doing it wrong. I put $10k into ETH/USDC, lost 7% impermanent loss, made $1,200 in fees in 14 days. Net gain? $500. Done. Stop lecturing. Just run the numbers and move on. If you can’t handle a 7% dip, don’t touch DeFi. Simple.
Susan Dugan
Hey everyone, I just want to say-you’re not alone. I used to be terrified of impermanent loss. I thought I was stupid for not understanding it. But here’s the secret: it’s not about being a genius. It’s about being consistent. I started with $100 in USDC/DAI. I checked the calculator every Sunday. I didn’t chase yields. I didn’t panic when ETH dipped. I just kept adding small amounts. Six months later, I’ve earned $38 in fees and had zero impermanent loss. That’s $38 I didn’t have before. And I didn’t lose sleep. You don’t need to be a pro. You just need to show up. And maybe use a calculator. 💪
Kristi Malicsi
Impermanent loss is just capitalism with extra steps. You’re trading certainty for a chance. If you want safety, keep your cash. If you want growth, accept the math. No one owes you a free lunch. The calculator is just a mirror. It doesn’t lie. You just don’t like what it shows.
ola frank
The constant product AMM model is fundamentally flawed under non-ideal market conditions. The k=x*y assumption ignores slippage, MEV, and gas fee arbitrage. Empirical studies from the MIT Crypto Finance Lab (2023) show that impermanent loss under high volatility regimes deviates by 18-32% from theoretical predictions due to non-linear liquidity provision behavior. Furthermore, the fee projections in most calculators are based on 24-hour volume, which is a poor proxy for 30-day yield. You are being sold a deterministic model in a stochastic environment. This is not financial advice-it’s algorithmic seduction.
imoleayo adebiyi
This is very good. I am from Nigeria and I have lost money before because I did not understand this. Now I use SushiSwap calculator. I put only small amount. I sleep better. Thank you for writing this.
Michael Labelle
I’ve been in and out of LPs for three years. The only thing that matters is whether you’re having fun. If you’re stressing over a 5% loss, maybe don’t do it. If you’re chilling while earning 4% APR on stablecoins? Perfect. No calculator needed. Just vibe with it.
Joel Christian
wait so if i put in 1 eth and 2000 usdc and eth goes to 3k i get less eth? but i thought i was making money?? omg i think i lost my rent money 😭
jeff aza
Let me just say-this article is a textbook example of how DeFi content has become a cottage industry of fearmongering disguised as education. The entire premise assumes that impermanent loss is a risk to be avoided, when in reality, it’s a tax on passive liquidity provision. The real risk? Not participating. The ‘calculator’ is just a psychological crutch for people who can’t handle volatility. If you’re using a calculator to decide whether to LP, you’re already too late. The market doesn’t care about your spreadsheet. It cares about your conviction.
Vijay Kumar
You’re all wasting time. Real traders don’t use calculators. They read the charts. They feel the market. If you need a tool to tell you not to lose, you shouldn’t be here. Go back to your 9-5. Crypto is for the bold.
Vance Ashby
Bro I just use the SushiSwap one and it’s lit 🚀 I don’t even look at the numbers anymore. If it says ‘+fee’ I click confirm. If it says ‘-IL’ I wait for a dip. Simple. I made $800 last month with $1.5k. Math is for losers. 🤖
Angel RYAN
Just want to say-this post saved me. I was about to dump $10k into an ETH/WIF pool because the APY was 45%. I ran it through SushiSwap’s calculator. It showed 32% impermanent loss over 30 days. Fees? 6%. I walked away. Two weeks later, WIF crashed 70%. I didn’t make money. But I didn’t lose everything. That’s a win. Thank you for the clarity.
Michael Fitzgibbon
There’s something beautiful about how this works-impermanent loss isn’t theft, it’s redistribution. The people who understand the math get the fees. The people who don’t, get the lesson. I used to think DeFi was about getting rich. Now I see it’s about learning to lose gracefully. I still LP, but I do it like I’m tending a garden. Small doses. Patience. No panic. The calculator is just my compass-not my crystal ball. And honestly? That’s enough.
stephen bullard
What if impermanent loss isn’t a problem to solve, but a mirror to reflect our relationship with money? We’re conditioned to chase growth. But what if the real wealth is in stillness? In choosing the stablecoin pair not because it’s profitable, but because it’s peaceful? The calculator doesn’t tell you whether to invest. It tells you whether you’re running from fear or toward clarity. I stopped using it to predict loss. I started using it to measure my peace.
Ben Costlee
Just saw someone mention stablecoin pairs. Exactly. I’ve been doing USDC/DAI for 18 months. Total return: 11.3% APR. Impermanent loss: 0.1%. Zero drama. No sleepless nights. No calculators needed after the first week. Just set it and forget it. That’s the real DeFi win.