Impermanent Loss
See exactly what an LP position loses versus simply holding.
Runs offline
Enter deposit, entry/exit prices for both tokens, and fee APR.
About impermanent loss
Impermanent loss is the gap between holding two assets and pooling them: when their relative price moves, the pool rebalances you into more of the loser and less of the winner. The loss is a pure function of how far the ratio moved — a 2× divergence costs about 5.7%, a 4× divergence about 20% — and it only becomes permanent when you withdraw. What most calculators leave out is the other half of the trade, so this one also works out how many days of fee income at your pool's APR it takes to cover the shortfall.
Common questions
What is impermanent loss?
The gap between holding two assets and providing them as liquidity when their price ratio moves. The pool rebalances you into more of the loser; the loss is impermanent only until you withdraw — then it is realised relative to simply holding.
Does fee income cancel impermanent loss?
Sometimes, often not. This calculator shows how many days of fee APR it would take to cover a given divergence, so the trade-off is a number rather than a slogan. Fees that stop do not erase a divergence that already happened.
Is impermanent loss the same on concentrated liquidity?
Concentrated positions amplify both fees and divergence inside the range you chose. The constant-product formula on this page is the classic Uniswap-v2-style case; narrower ranges need their own maths and are not claimed here.