Finance

Impermanent Loss Calculator — DeFi Liquidity Pools Simulator

Calculate impermanent loss (IL) for dual-asset AMM liquidity pools. Compare LP yields against holding tokens.

How to use this calculator

👉 Fill in the boxes below and your answer appears instantly — no maths needed, we do it all for you! 🎉

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In plain English — what does this do?

🪙 Crypto is like buying and selling digital coins online. This tool helps you see how much you spent, how much you made, and whether you’re winning or losing money from your trades.

📌 Direct Answer & Summary

Impermanent loss is the temporary loss of funds that liquidity providers (LPs) experience in dual-token automated market maker (AMM) pools due to volatility. It represents the value difference between holding tokens in your wallet vs depositing them in a pool.

DeFi Pool Comparison

Value if HELD
Value in POOL
Impermanent Loss

What is Impermanent Loss Calculator — DeFi Liquidity Pools Simulator?

Impermanent loss is the temporary loss of funds that liquidity providers (LPs) experience in dual-token automated market maker (AMM) pools due to volatility. It represents the value difference between holding tokens in your wallet vs depositing them in a pool.

How to use it

  1. 1️⃣ Enter the price change percentage of Token A (e.g., +50%).
  2. 2️⃣ Enter the price change percentage of Token B (e.g., -10%).
  3. 3️⃣ The tool calculates the impermanent loss percentage and displays a graphic comparison.

Formula

IL = 2 * sqrt(P) / (1 + P) - 1, where P is the relative price ratio change of Token A to Token B.

💡 See it in action — a real example

If Token A doubles in price (+100%) and Token B remains unchanged, your impermanent loss is 5.72% compared to holding the assets.

❓ Common questions

Is impermanent loss permanent?
It is 'impermanent' because if the relative prices of the tokens return to their original ratio when you withdraw, the loss disappears. It only becomes permanent upon withdrawal.

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