DEFI • LIQUIDITY POOLS • LP RETURNS
Crypto Liquidity Pool Calculator
Estimate fee yield, impermanent loss and your net LP value versus holding the same two tokens.
NET LP VALUE—
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LP versus HODL
Same starting 50/50 token exposure.
Decision metrics
Calculation summary
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Method, example and assumptions
Formula: fee APR = daily volume × fee tier × 365 ÷ pool TVL. Simple fees = deposit × fee APR × days ÷ 365; with daily reinvestment the deposit compounds at fee APR ÷ 365 per day. Your pool share is deposit ÷ TVL, and the constant-product pool value after both prices change is deposit × √(priceA × priceB), compared with the HODL value deposit × 0.5 × (priceA + priceB).
Worked example: with the defaults — deposit $10,000, TVL $2,000,000, volume $750,000/day, fee 0.30%, 30 days, Token A at 130% and Token B at 100% — fee APR = 750,000 × 0.003 × 365 ÷ 2,000,000 ≈ 41.06%; simple fees ≈ $337.50; HODL value = 10,000 × 0.5 × (1.30 + 1.00) = $11,500; LP value before fees = 10,000 × √(1.30 × 1.00) ≈ $11,401.75 (impermanent loss ≈ −0.85%); net LP value = 11,401.75 + 337.50 − 40 = $11,699.25, about +$199.25 above HODL.
Assumptions: volume, TVL and the fee tier are constant, the pool is a 50/50 constant-product AMM without concentrated ranges, and token prices change once, at the end of the period. Fees compound only when daily reinvestment is selected; incentives, taxes and slippage are not included.
Method reviewed August 23, 2026.
How to evaluate a crypto liquidity pool
A high advertised APR is not enough. Compare fee income with impermanent loss, gas costs and the value you would have had by simply holding both assets. Enter your deposit, the pool's TVL, average daily volume and swap fee to estimate your share of the pool's fee income.
Impermanent loss appears when token prices move apart: the constant-product pool automatically rebalances your position by selling part of the outperforming asset. Daily fee compounding and low volume-to-TVL ratios can offset it, but nothing is guaranteed.
Frequently asked questions
What does this crypto liquidity calculator estimate?
It estimates pool share, fee APR, fees, impermanent loss and net LP value versus holding both tokens.
Does it support concentrated liquidity?
No. Results model a standard 50/50 constant-product AMM. Concentrated liquidity requires range-specific accounting.
Are liquidity pool fees guaranteed?
No. Future volume, TVL, token prices and costs can change materially.