how to use the impermanent loss calculator
- Enter the value you deposit into the pool.
- Enter the price change of each token since you deposited (e.g. the memecoin +200%, SOL 0%).
- Enter the pool's fee APR and the days you stay in.
- Compare the LP value with the value of simply holding.
formula
r = (1 + change A) ÷ (1 + change B) impermanent loss = 2 × √r ÷ (1 + r) − 1 LP value = hold value × (1 + impermanent loss) + fees
impermanent loss by price change
- 1.25x ratio change: −0.6%
- 1.5x: −2.0%
- 2x: −5.7%
- 3x: −13.4%
- 5x: −25.5%
- 10x: −42.5%
- 0.5x (one side halves): −5.7%
The loss depends only on how far the two prices drift apart, not on direction. It is "impermanent" because it disappears if the ratio returns to where you entered, and becomes permanent when you withdraw.
memecoin pools are the extreme case
Providing liquidity to a memecoin/SOL pool means the pool sells your memecoin as it pumps and buys more of it as it dumps. If the memecoin does a 10x you keep about 57% of what holding would have given; if it goes to zero you end with the whole position in the dead token's side draining toward zero. High fee APRs on these pools pay for exactly that risk.
frequently asked questions
What is impermanent loss?
The difference between the value of tokens in a liquidity pool and the value the same tokens would have if you had held them, caused by the pool rebalancing as prices move.
How much impermanent loss is there at 2x?
5.72% versus holding, for a 50/50 constant-product pool, whether one token doubles or the other halves.
Can fees cover impermanent loss?
Yes, if the pool earns enough trading fees before you withdraw. The calculator shows the number of days at your fee APR needed to break even with holding.
Updated . Free, no sign-up, runs in your browser. Not financial advice.