Impermanent Loss Calculator

Impermanent loss (IL) occurs when you provide liquidity to an automated market maker (AMM) like Uniswap or SushiSwap, and the price of the deposited tokens changes relative to when you deposited them. The bigger the price change, the larger the loss.

It’s called “impermanent” because the loss only becomes permanent (or “realised”) when you withdraw your liquidity. If the price returns to the original ratio, the loss disappears. In practice, prices rarely return to exactly the same point.

For a 50/50 pool, the formula is IL = 2 × √r / (1 + r) − 1 where r is the new/old price ratio of the volatile token. The result is always negative or zero, representing the percentage loss compared to simply holding.

Impermanent loss is only one side of the equation. LP positions also earn trading fees (and sometimes farming rewards). If fees earned exceed IL, you still come out ahead. Use this calculator to understand IL risk, then factor in the pool’s APR.