web3-developer-tools100% Client-Side LocalUniswap V2 Math

AMM Impermanent Loss & Liquidity Calculator

Simulate token price changes in an automated market maker liquidity pool and compare estimated LP holdings with simply holding the original assets.

How to Use

1

Enter your initial Token A quantity and initial price in USD.

2

Enter the future or simulated price of Token A (or click quick scenario multiplier buttons like 1.5x, 2x, 0.5x).

3

Optionally input accumulated fee yield percentage or fee income in USD.

4

Analyze the calculated Impermanent Loss percentage, HODL value, pre-fee LP value, and net outcome.

5

Examine the interactive SVG loss curve and mathematical scenario comparison table below.

Why Use AMM Impermanent Loss & Liquidity Calculator?

Precise Constant-Product Math

Implements exact Uniswap V2 invariant formulas (x · y = k) with symmetric reciprocal loss properties.

LP vs. HODL Comparison

Clearly displays whether trading fees and liquidity incentives exceed the divergence loss of holding.

Arbitrage Rebalancing Simulator

Shows exact token quantity changes resulting from pool arbitrage as relative prices change.

Mathematical Scenario Matrix

Projects loss percentages across standard market fluctuations from 0.25x up to 5x price divergence.

About This Tool

The AMM Impermanent Loss & Liquidity Calculator models the financial outcome of providing liquidity to a constant-product (x · y = k) automated market maker like Uniswap V2 or SushiSwap. It simulates token rebalancing, computes theoretical impermanent loss relative to HODLing, incorporates fee income, and graphs the loss curve across varying price ratios.

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Frequently Asked Questions

Impermanent loss occurs when the price ratio of tokens in an AMM liquidity pool changes compared to when you deposited them. Arbitrageurs trade with the pool until its internal price matches the external market, leaving the pool with less of the appreciating token and more of the depreciating token. The "loss" is the difference between your LP position value and what you would have had by simply holding.

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