🔄 Impermanent Loss Calculator
Estimate the impermanent loss from providing liquidity to a two-asset crypto pool, based on how much the asset price ratio has changed.
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What is impermanent loss?
Impermanent loss is the temporary difference in value between holding two tokens in a liquidity pool versus simply holding them in a wallet, caused by the pool automatically rebalancing as prices diverge.
The formula
Impermanent Loss = [2 × √(Price Ratio) / (1 + Price Ratio)] − 1, where Price Ratio is the new price divided by the price when liquidity was deposited. The result is always zero or negative — the larger the price change in either direction, the greater the loss relative to holding.
This calculator is for general educational purposes about decentralized finance (DeFi) mechanics, not financial advice.
Last reviewed August 2026