---
title: "DeFi Yield & Impermanent Loss Calculator"
description: "DeFi yield and impermanent loss calculator: model APR, APY, fees, incentives, price changes, gas costs, and net LP scenarios with transparent assumptions."
canonical: https://www.getswoopr.com/tools/defi-yield-impermanent-loss-calculator/
source: "Swoopr Investment: https://www.getswoopr.com"
---

## Direct Answer



> The DeFi Yield and Impermanent-Loss Calculator models two scenarios from assumptions you enter. The yield mode separates base interest or trading-fee yield, incentive-token yield, and principal price change, then subtracts management fees, performance fees, and entry and exit gas; the LP mode applies the standard impermanent-loss formula for a full-range 50/50 constant-product pool, **IL = 2 × √r / (1 + r) − 1**, and shows where fee and incentive income break even against that loss. Results are educational scenarios rather than forecasts, and they exclude smart-contract risk, protocol insolvency, bridge failure, oracle manipulation, regulatory action, and tax treatment.





      

# DeFi Yield & Impermanent-Loss Calculator



Model how DeFi yield or liquidity-provider positions behave under different price and fee assumptions. Results are educational scenarios with transparent formula assumptions, not forecasts.




![Top view of business tools including a calculator, smartphone with charts, magnifying glass, and clock on black background.](https://www.getswoopr.com/images/hero/tools-defi-yield-impermanent-loss-calculator.webp)
*Photo by [Nataliya Vaitkevich](https://www.pexels.com/@n-voitkevich/) via [Pexels](https://www.pexels.com/photo/orange-calculator-beside-the-black-smartphone-6120170/)*







**Educational tool only.** Results are scenarios based on user-entered assumptions, not investment advice, price forecasts, or safety ratings. DeFi positions can result in partial or total loss of principal.








## DeFi Yield & Impermanent-Loss Calculator



This calculator has two modes. **Mode A, Yield Scenario** models a DeFi yield position over time: base APR, incentive tokens, compounding, fees, and principal price change. **Mode B, LP Scenario** models a simplified 50/50 constant-product liquidity position: impermanent loss across price-ratio changes, fee income, and net comparison to holding.






Try a sample scenario:



Sample yield position


Sample LP position







Mode A: Yield Scenario


Mode B: LP Scenario




        





Please correct the following errors:










Position basics




Starting principal (USD or units)




The value you are depositing. Use consistent units throughout.








Holding period (days)













Yield sources




Base APR (%)




Annual percentage rate from trading fees or base lending. Enter as a percentage (e.g. 8 for 8%).








Incentive / reward APR (%)




Additional APR from reward tokens (liquidity mining, etc.). Enter 0 if none.








Reward token price change assumption (%)




Your assumption for how reward token price changes over the period. Enter 0 for no change, -50 for a 50% drop, 100 for a double.











Compounding




Compounding frequency




None (simple interest)


Daily


Weekly


Monthly


Quarterly


Semi-annually


Annually




How often base yield is reinvested. Applies to base APR only; incentive tokens are treated as simple interest unless you reinvest them manually.









Fees and costs




Management fee (% per year)










Performance fee (% of profit)




Charged on gross yield profit if positive. Enter 0 if none.








Entry gas + slippage cost (USD)










Exit gas + slippage cost (USD)













Principal price change




Principal token price change over period (%)




If your principal is denominated in a volatile token, enter your price-change assumption over the period (e.g. -10 for a 10% drop). Enter 0 to evaluate in token terms only.











Calculate yield scenario


Reset









### Yield Scenario Results



Results are a modeled scenario under user-entered assumptions, not a forecast, guarantee, or investment recommendation.









#### Calculation breakdown






#### Assumptions summary






#### Sensitivity, net return under different reward price change scenarios












Model limitations

              This model assumes constant APR and principal price over the period. It does not account for: variable rates, auto-compounding vaults, harvesting cost timing, liquidity removal risks, protocol insolvency, smart-contract vulnerabilities, oracle failure, tax treatment, or secondary market liquidity. Tax treatment is not calculated and should not be inferred from these results.







        





Please correct the following errors:






**Model scope** This mode calculates impermanent loss for a simplified full-range 50/50 constant-product pool (e.g. Uniswap v2 style). It does not model concentrated liquidity (Uniswap v3/v4), stableswap curves (Curve), weighted pools (Balancer), dynamic fees, rebasing tokens, transfer-tax tokens, leverage, liquidation, oracle failure, or bridge failure.







Position details




Starting LP deposit value (USD or units)




Total value deposited at entry, split 50/50 between the two tokens.











Price ratio




Starting price of token B (in token A units)




Example: if the pool is ETH/USDC and ETH starts at $1,000, enter 1000. Or use a normalized ratio (e.g. 1).








Ending price of token B (in token A units)




Your assumed ending price in the same units.











Income and costs




Estimated total fee income (% of starting value)




Your estimate of total trading-fee income earned by the LP over the holding period, as a % of starting deposit. Enter 0 to see pure IL with no fee offset.








Incentive / liquidity-mining income (% of starting value)




Additional reward-token income over the period, as a % of starting deposit. Enter 0 if none.








Incentive token price change (%)




Price change assumption for incentive tokens over the period. Enter 0 if none or to value at issue price.








Gas + protocol costs (USD or units)













Calculate LP scenario


Reset









### LP Scenario Results



Results are a modeled scenario under user-entered assumptions, not a forecast, guarantee, or investment recommendation. The formula applies only to simplified full-range 50/50 constant-product pools.









#### Calculation breakdown






#### Impermanent-loss scenario table, multiple price ratios



Price ratio is ending price divided by starting price. Fee and incentive income are held constant across the scenario table.





| Price ratio (r) | IL % | Hold value | LP value (no fees) | LP value (with fees) | vs. Hold |
| --- | --- | --- | --- | --- | --- |








Model limitations

              Applies to full-range 50/50 constant-product pools only. Does not model: concentrated liquidity ranges, out-of-range positions, stableswap invariants, protocol-specific fee tiers, dynamic fees, rebasing or transfer-tax tokens, impermanent gain from price recovery, smart-contract risk, bridge risk, oracle manipulation, or tax treatment. Rates, fees, and prices entered are assumptions and can change immediately.












## About This Calculator



### Mode A, Yield Scenario



Mode A models a single-token or LP yield position over a user-defined period. It separates returns into three components, base interest or trading-fee yield, incentive-token yield, and principal price change, and then subtracts management fees, performance fees, entry gas, and exit gas to show a net ending value.

![financial calculator data analysis DeFi Yield Impermanent](https://www.getswoopr.com/images/accent/tools-defi-yield-impermanent-loss-calculator-accent-1.webp)
*Photo by [Flyfin](https://pixabay.com/users/Flyfin-30682062/) via [Pixabay](https://pixabay.com/photos/finance-accounting-tax-7529921/)*



The base yield is calculated as: **simple interest = principal × APR × (days / 365)**. If compounding is selected, the base yield is recalculated using **APY = (1 + APR / n)n − 1**, where *n* is the number of compounding periods per year, and the ending value uses **principal × (1 + APR / n)n × days / 365**.



Incentive yield uses simple interest: **incentive value = principal × incentive APR × (days / 365) × (1 + reward price change / 100)**. Management fees are prorated over the period. Performance fees are taken on gross positive yield only.



The sensitivity table shows net return across low (−50%), base (your entered value), and high (+50%) reward price-change scenarios, holding all other inputs constant.




### Mode B, LP Scenario (Impermanent Loss)



Mode B applies the standard simplified impermanent-loss formula for a full-range 50/50 constant-product AMM pool. Given a price ratio change *r* (ending price divided by starting price), the formula is:



**IL = 2 × √r / (1 + r) − 1**



This expresses the LP value as a fraction of the holding value. The hold value for a 50/50 split across the price change is **starting value × (1 + r) / 2**. The LP value before fees is **starting value × √r**. Fee income and incentive income (adjusted for incentive token price change) are added, and gas costs subtracted, to show the LP value after fees versus holding.



The scenario table evaluates several standard price ratios (0.25×, 0.5×, 0.75×, 1×, 1.25×, 1.5×, 2×, 3×, 4×) with your entered fee and incentive income held constant, showing where fees break even against impermanent loss.




### What these results do not tell you



- They are not forecasts of actual returns, rates and prices can change immediately.
- They do not account for smart-contract risk, protocol insolvency, bridge failure, oracle manipulation, or regulatory action.
- Tax treatment is not calculated and should not be inferred.
- The impermanent-loss formula does not apply to concentrated liquidity ranges, stableswap invariants, or weighted pools.
- Gas costs used are user-entered estimates, actual on-chain costs vary.








## Supporting Lessons



These pages explain the concepts behind the calculator's formulas and inputs.



- [Impermanent Loss Explained](https://www.getswoopr.com/learn/defi-and-yield-farming/liquidity-pools-and-amms/impermanent-loss-explained/): what impermanent loss is, why it happens, and how it compares with holding.
- [APR vs. APY in DeFi](https://www.getswoopr.com/learn/defi-and-yield-farming/yield-farming-and-vaults/apr-vs-apy-defi/): the difference between simple and compound rates and how compounding frequency affects results.
- [DeFi Yield Explained](https://www.getswoopr.com/defi-yield-explained/): an overview of how DeFi protocols generate yield and the risk factors behind each source.
- [Liquidity Pools Explained](https://www.getswoopr.com/learn/defi-and-yield-farming/liquidity-pools-and-amms/liquidity-pools-explained/): how constant-product AMMs work and how LP positions are created and redeemed.
- [DeFi Position Management](https://www.getswoopr.com/learn/defi-and-yield-farming/risk-and-due-diligence/defi-position-management/): how to monitor, rebalance, and exit DeFi positions, including when IL exceeds fee income.
- [DeFi & Yield Farming Hub](https://www.getswoopr.com/learn/defi-and-yield-farming/): the full DeFi and yield farming curriculum.








## References



- [Uniswap Documentation](https://developers.uniswap.org/): the canonical constant-product AMM specification behind the impermanent-loss formula (IL = 2√r / (1 + r) − 1) this calculator's Mode B implements.
- [Ethereum.org: DeFi Overview](https://ethereum.org/defi/): background on liquidity pools and the fee/incentive-yield mechanics modeled in Mode A.



Results are scenario projections from your entered assumptions, not forecasts. They do not account for smart-contract, bridge, or oracle risk, and the impermanent-loss formula applies only to full-range 50/50 constant-product pools, not concentrated liquidity ranges, stableswap invariants, or weighted pools.






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