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Impermanent Loss & LP Risk Calculator

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⚠ IL CALCULATOR

Impermanent Loss Calculator

Calculate impermanent loss for DeFi liquidity pools — compare HODL vs LP strategies

Impermanent Loss
-18.9395%
IL in USD
$-1,610
Pool vs HODL
-17.92%
Rewards Offset IL
✗ No
Pool Parameters
$
$
+42.86% price change
%
days
Initial Value$7,000
HODL Value Now$8,500
Pool Value Now$6,890
Pool Rewards+$86.30
Net Pool Result$6,976
Impermanent Loss Exceeds Pool Rewards
Your pool rewards of $86.30 are less than the IL of $1,610. Net vs HODL: $-1,524 (-17.92%)
Impermanent Loss at Different Price Ratios
Price MultiplierETH PriceHODL ValueLP Pool ValueIL %
0.5×$1,750$5,250$6,60025.710%
0.75×$2,625$6,125$6,92813.110%
1×$3,500$7,000$7,0000.000%
1.25×$4,375$7,875$6,957-11.660%
1.5×$5,250$8,750$6,859-21.620%
2×$7,000$10,500$6,600-37.150%
3×$10,500$14,000$6,062-56.700%
5×$17,500$21,000$5,217-75.150%
10×$35,000$38,500$4,025-89.550%

How to Use Impermanent Loss Calculator: DeFi LP Risk Analyzer

Three quick steps to quantify your DeFi LP exposure.

1
Enter Initial Token Prices

Input the starting price of each asset in your liquidity pair to set the baseline value.

2
Set the Future Price Scenario

Add the expected or current price after a change to model pool rebalancing outcomes.

3
Review LP vs HODL Returns

View side-by-side results showing impermanent loss percentage, pool value, and HODL performance.

Why Use Impermanent Loss Calculator: DeFi LP Risk Analyzer?

Quantify risk before committing capital to a liquidity pool.

Precise IL Math

Uses the constant product formula (x*y=k) to calculate impermanent loss across any price ratio.

Side-by-Side Comparison

Shows LP value versus HODL value in one view so the exact opportunity cost is visible.

Custom Price Scenarios

Test any price change percentage to stress-test positions against volatile market moves.

Practical Examples of Impermanent Loss Calculator: DeFi LP Risk Analyzer

Real-world scenarios where this tool is used.

ETH/USDC Pool with 2x Price Increase

An LP deposited 1 ETH and 2000 USDC. After ETH doubles, see how much value is lost to IL versus simply holding both tokens.

Stablecoin Pair During a Minor Depeg

A USDC/USDT pool where one stablecoin drops 2%. Calculate the impermanent loss exposure during low-volatility events.

Volatile Altcoin Liquidity Provision

An LP on a long-tail token pair experiences a 70% drop. Model the divergence loss before exiting the position.

Frequently Asked Questions

Explore comprehensive answers, mathematical formulas, and helpful guidance for calculating your results.

What price change ratio makes LP returns worse than simply HODLing?

Any price divergence between pooled assets creates impermanent loss. The loss grows as the price ratio deviates from 1:1, with a 2x move causing roughly 5.7% IL and a 5x move causing about 25.5% IL.

Does the calculator account for trading fees offsetting impermanent loss?

The base IL output excludes fee income. You can add expected fee APR and reward emissions to determine the breakeven point where LP yield surpasses HODL returns.

How is impermanent loss calculated for pools with more than two tokens?

Multi-asset pools use a generalized formula that weighs each token price change against its allocation. Each asset's contribution is calculated separately, then summed for the total IL.

Why does a loss appear even when the pool total value increases?

Impermanent loss is relative to holding, not absolute returns. The pool rebalances by selling the winner and buying the loser, leaving you with less of the appreciating asset than HODLing would.