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BTC—ETH—BTC MAX SUPPLY21,000,000BTC MINED20,000,000+BLOCK REWARD3.125 BTCNEXT HALVING~2028BTC BLOCK TIME~10 MINETH BLOCK TIME12 SECETH TRANSFER21,000 GAS1 BTC100,000,000 SATS1 ETH1,000,000,000 GWEISTABLECOIN TARGET$1.00US CRYPTO FRAUD LOSSES 2025$11.4BCOINS ON COINGECKO~22,800FIRST BLOCKJAN 3 2009

Impermanent loss calculator

See how much a liquidity pool position falls behind simply holding the two tokens when their prices move, and how much in fees would make up for it.

For a 50/50 constant-product pool (Uniswap v2 style). Concentrated-liquidity positions (Uniswap v3 style) lose more for the same move; weighted pools lose less. Excludes gas and reward tokens.

How it's calculated

  • Price ratio r = (1 + token A change) ÷ (1 + token B change)
  • Impermanent loss = 2 × √r ÷ (1 + r) − 1
  • Value if you had held = deposit ÷ 2 × (1 + A change) + deposit ÷ 2 × (1 + B change)
  • Value in the pool = value if held × (1 + impermanent loss), plus any fees you enter

The formula follows from the pool rule x × y = k: the pool's value grows with the square root of the price ratio, while a 50/50 holding grows with its average. It's checked step by step, from the pool's actual balances, in impermanent loss explained.

Worked example

$2,000 split into ETH and USDC. ETH doubles and USDC stays at $1, so r = 2. Impermanent loss = 2 × √2 ÷ 3 − 1 = -5.72%. Holding would be worth $3,000; the pool position is worth $2,828.43, $171.57 less. You'd need more than that in fees to beat holding.

If both tokens move by the same percentage, r = 1 and there's no impermanent loss, however far they move. What matters is how far they move relative to each other.

Sources

  1. How Uniswap works (Uniswap v2 documentation)
  2. Uniswap v2 core whitepaper (2020)

Questions

How do I calculate impermanent loss?

Find r, the change in one token's price relative to the other, then IL = 2√r ÷ (1 + r) − 1. A 2x relative move gives −5.72%, a 4x move −20%.

Does impermanent loss happen if both tokens go up?

Only if they rise by different amounts. If both rise by the same percentage, the ratio doesn't change and there's no impermanent loss.

Does this work for Uniswap v3?

No. It's for full-range 50/50 pools. Concentrated positions in v3 and later can lose several times more for the same price move.

Every result is worked out in your browser. Nothing you type is sent anywhere. Results are estimates for learning and planning, not financial or tax advice. Last reviewed November 4, 2026.