Impermanent Loss Calculator for Uniswap V3
Calculate impermanent loss for standard AMM and Uniswap V3 concentrated liquidity positions. Compare LP returns vs. holding.
ETH Price
Position
If ETH price changes by...
ETH: $2,000 → $2,200
Impermanent Loss
-0.11%
$11.91 lost to IL
Show IL reference table
| Price Change | IL % | IL on $10K |
|---|---|---|
| 1.25x | -0.62% | $69.66 |
| 1.5x | -2.02% | $252.55 |
| 2x | -5.72% | $857.86 |
| 3x | -13.40% | $2,679.49 |
| 4x | -20.00% | $5,000.00 |
| 5x | -25.46% | $7,639.32 |
Estimates based on price changes only. Actual returns depend on trading fees earned, gas costs, and time in/out of range (V3). Fee income can offset IL. Not financial advice.
Understanding Impermanent Loss
Impermanent loss is the difference between holding tokens in a liquidity pool versus simply holding them in your wallet. When token prices diverge from their ratio at the time of deposit, the AMM's constant rebalancing means you end up with less value than if you had just held.
The standard formula for IL in a constant-product AMM is:
IL = 2√(price_ratio) / (1 + price_ratio) − 1
Concentrated Liquidity Makes IL Worse
Uniswap V3's concentrated liquidity amplifies impermanent loss within your chosen price range. While you earn more fees from the concentration, the IL is proportionally higher. If the price moves outside your range, you're left holding 100% of the depreciating token with zero fee income.
Empirical research shows that approximately 49.5-51% of Uniswap V3 LPs would have been better off simply holding their assets.
When Is LP Profitable?
- High trading volume — more fees to offset IL
- Low volatility — less price divergence means less IL
- Appropriate range width — wider ranges reduce IL but earn fewer fees
- Stable pairs — stablecoin/stablecoin pools have minimal IL
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