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Impermanent Loss & LP Break-Even Calculator

Updated Sep 2026 Used 0 times
Total quote-currency value of the two assets when liquidity is added.
Quote-currency price of Token A when the position begins.
Modeled quote-currency price of Token A at the comparison time.
Quote-currency price of Token B when the position begins.
Modeled quote-currency price of Token B at the comparison time.
Starting value weight of Token A. Use 50 for a standard equal-value constant-product pool.
Days used to convert the entered annual fee rate into scenario income and to annualize break-even.
Select how the entered annual fee rate should be converted over the holding period.
Illustrative fee APR or APY applied to the initial deposit over the holding period. Replace it with your own scenario; it is not a protocol forecast.
Current quote-currency value of incentives earned during the modeled period.
LP-specific transaction, bridge, claim, and withdrawal costs paid over the scenario.
Modeled execution cost. Slippage is separate from impermanent loss.

Guest calculations stay on this device. Signed-in results sync privately.

Your result

Impermanent Loss & LP Break-Even

Enter your values, then calculate to see a verified result.

Inputs usedReview the information used for this result.
Full calculation and sourcesOpen Full calculation for the assumptions, cost bridge, comparison table, and interpretation.

Versioned calculationFormula v1.0.0

Method reviewed 2026-09-25User inputs and cited formula sourcesFormula v1.0.0

Two benchmarks

See both HODL break-even and recovery of starting capital.

Fee basis is explicit

Simple APR and effective APY use the entered holding period.

Scope is visible

Full-range two-token constant-mean math; no V3 range claim.

Result actions
1
Normalize price growthCompare each token exit price with its entry price.gA and gB
2
Value hold and LPUse the weighted arithmetic and geometric means.Opportunity-cost gap
3
Solve both break-even testsAdd fees and rewards, subtract costs, then annualize.HODL and capital hurdles

Interpretation

Keep the HODL hurdle separate from recovery of starting capital.

Treat entered fee yield and rewards as scenarios, not forecasts.

A low IL number does not remove depeg, contract, liquidity, or custody risk.

Use this result

Keep exploring

1 available tools
Percent Change CalculatorCheck an asset price change independently.
Public verification recordFormula v1.0.0
Review scope
Financial-calculation-and-content-review
Review team
CalculatorGeek Algorithmic Team
Verified
2026-09-25
Next source review
2027-03-25
Automated fixtures
6 cases

Review method

Independent formula derivation, boundary vectors, JavaScript/PHP parity, visible assumption review, primary-source review, content-intent separation, internal-link checks, desktop/mobile rendering, and browser interaction checks.

Known limitations

  • This model covers two-token full-range constant-mean pools.
  • Terminal prices determine fee-free divergence loss but not actual fee earnings.
  • The entered fee APR or APY is applied to the initial deposit as a scenario.
  • Concentrated-liquidity and StableSwap positions need different models.
  • Rewards and costs are user-entered current-value assumptions.
  • The calculator does not model smart-contract, oracle, governance, custody, bridge, depeg, tax, or counterparty risk.

Primary sources

Published calculation checks

CaseInputsExpected result
No relative price changeSee versioned calculator fixture{"impermanent_loss_percent":0,"impermanent_loss_dollars":0,"hodl_value":10000,"fee_free_lp_value":10000}
Token A doubles in a 50/50 poolSee versioned calculator fixture{"hodl_value":15000,"fee_free_lp_value":14142.135623731,"impermanent_loss_dollars":857.864376269,"impermanent_loss_percent":5.7190958418}
Reciprocal half-price symmetrySee versioned calculator fixture{"hodl_value":7500,"fee_free_lp_value":7071.0678118655,"impermanent_loss_percent":5.7190958418}
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What the Impermanent Loss & LP Break-Even Calculator calculates

The Impermanent Loss & LP Break-Even Calculator compares a two-token full-range constant-mean liquidity position with simply holding the original token mix. It reports the fee-free opportunity-cost gap, applies an illustrative entered APR or APY to the initial deposit over an explicit number of days, adds rewards, subtracts LP-specific costs, and calculates both the fee hurdle to match HODL and the separate hurdle to recover starting capital.

Continue with Verify the IL formula or Find the LP fee hurdle for the next calculation.

How to use this calculator

  1. Enter the total initial deposit and entry and exit prices for both tokens.
  2. Keep Token A weight at 50% for a standard equal-value constant-product pool; use another weight only for a compatible constant-mean pool.
  3. Choose whether the fee scenario is simple APR or effective APY and enter the holding period.
  4. Add reward value and itemized LP-specific costs without double counting.
  5. Compare HODL, fee-free LP, and net LP values, then read both break-even hurdles.

Method and formula

For starting value V and asset growth factors gA and gB, HODL is V × (w × gA + (1−w) × gB). A fee-free constant-mean LP is V × gA^w × gB^(1−w). Their difference is divergence loss. At 50/50 weights, the value ratio simplifies to 2√r ÷ (1+r), where r is the relative A/B price multiplier. The optional fee scenario applies the entered simple APR or effective APY to starting value V over the holding period; it does not reconstruct pool volume or fee growth.

The impermanent-loss formula guide derives the result and its reciprocal symmetry.

Worked example

With a $10,000 50/50 deposit, Token A doubling and Token B unchanged, HODL ends at $15,000 and the fee-free LP at $14,142.14. The $857.86 gap is 5.7191% of the ending HODL value, not 5.7191% of the original deposit. Over 30 days with $100 of LP-specific costs and no rewards, $957.86 of fees is needed to match HODL.

How to interpret the result

“Beat HODL” and “made money” are different tests. The LP can finish below the starting deposit but ahead of HODL when both assets fall, or above the starting deposit but behind HODL when one asset rallies. Read the net advantage versus HODL and gain or loss versus starting capital separately.

Use Impermanent Loss vs HODL before describing a result as profitable.

Assumptions and limitations

The model covers two-token full-range constant-mean pools and assumes arbitrage aligns the pool with the entered external price ratio. It does not reproduce concentrated ranges, StableSwap, multi-token rebalancing, actual path-dependent fee growth, taxes, depeg recovery, MEV, smart-contract failure, bridge risk, or reward-token vesting. Entered fee yield is a scenario, not a forecast or recommendation.

Inputs, outputs and result meaning

Separates fee-free divergence loss from net LP outcome and solves independent fee hurdles for beating HODL and recovering starting capital over an explicit holding period.

Inputs

Initial LP deposit value
Total quote-currency value of the two assets when liquidity is added. Supported range: 0.01 to 1,000,000,000.
Token A entry price
Quote-currency price of Token A when the position begins. Supported range: 0 to 1,000,000,000,000.
Token A exit price
Modeled quote-currency price of Token A at the comparison time. Supported range: 0 to 1,000,000,000,000.
Token B entry price
Quote-currency price of Token B when the position begins. Supported range: 0 to 1,000,000,000,000.
Token B exit price
Modeled quote-currency price of Token B at the comparison time. Supported range: 0 to 1,000,000,000,000.
Token A pool weight
Starting value weight of Token A. Use 50 for a standard equal-value constant-product pool. Supported range: 1 to 99.
Holding period
Days used to convert the entered annual fee rate into scenario income and to annualize break-even. Supported range: 1 to 3,650.
Fee-rate basis
Select how the entered annual fee rate should be converted over the holding period. Choices: Simple APR, Effective APY.
Estimated annual LP fee rate on initial deposit
Illustrative fee APR or APY applied to the initial deposit over the holding period. Replace it with your own scenario; it is not a protocol forecast. Supported range: 0 to 100,000.
Rewards and incentives at exit
Current quote-currency value of incentives earned during the modeled period. Supported range: 0 to 1,000,000,000.
Entry, exit, claim, and gas costs
LP-specific transaction, bridge, claim, and withdrawal costs paid over the scenario. Supported range: 0 to 1,000,000,000.
Estimated slippage and price-impact costs
Modeled execution cost. Slippage is separate from impermanent loss. Supported range: 0 to 1,000,000,000.

Outputs

Impermanent loss versus holding
Primary result. Calculated from the visible scenario without intermediate display rounding.
Dollar gap versus holding
Calculated from the visible scenario without intermediate display rounding.
Ending value if the original tokens were held
Calculated from the visible scenario without intermediate display rounding.
Fee-free LP ending value
Calculated from the visible scenario without intermediate display rounding.
Estimated fee income on initial deposit
Calculated from the visible scenario without intermediate display rounding.
Entered LP-specific costs
Calculated from the visible scenario without intermediate display rounding.
LP ending value after fees, rewards, and costs
Calculated from the visible scenario without intermediate display rounding.
Net LP advantage or shortfall versus holding
Calculated from the visible scenario without intermediate display rounding.
LP gain or loss versus starting capital
Calculated from the visible scenario without intermediate display rounding.
Fee income needed to match holding
Calculated from the visible scenario without intermediate display rounding.
Annual fee rate needed to match holding
Calculated from the visible scenario without intermediate display rounding.
Fee income needed to recover starting capital
Calculated from the visible scenario without intermediate display rounding.
Annual fee rate needed to recover starting capital
Calculated from the visible scenario without intermediate display rounding.
Relative Token A to Token B price multiplier
Calculated from the visible scenario without intermediate display rounding.

Formula contract: HODL = V(wgA + (1-w)gB); fee-free LP = V(gA^w)(gB^(1-w)); IL = 1 - LP/HODL; net LP = LP + fees + rewards - LP-specific costs.

Frequently asked questions

Is impermanent loss a loss from the starting deposit?

Not necessarily. It is the value gap between the LP position and holding the original token quantities at the same ending prices.

Why can IL be zero while the portfolio loses money?

If both token prices move by the same factor, the relative price ratio is unchanged, so divergence loss is zero even though both assets may fall.

Can APR or APY guarantee fees?

No. The rate is an entered scenario. Actual fees depend on volume, fee tier, active liquidity, position share, protocol share, path, and time.

Does this calculate Uniswap V3 range risk?

No. A concentrated position requires the selected price bounds and range-specific liquidity math.

Primary sources

Sources and methodology reviewed 2026-09-25. Results are planning estimates, not a lender quote, tax opinion, investment recommendation, legal opinion, or provider proposal.