How is the current value of an LP position computed?

A constant-product pool keeps the product of the two token reserves constant. As prices move, the pool rebalances so the new token amounts satisfy that invariant. The tool recomputes your token balances at the current price ratio and values them at current prices.

What is the HODL value used for comparison?

The HODL value is what your original deposited tokens would be worth today if you had simply held them instead of pooling. Subtracting your LP value from the HODL value gives the impermanent loss in dollars, the cost of providing liquidity.

How do fees factor into net P&L?

Trading fees accrue to liquidity providers and partly or fully offset impermanent loss. Net P&L is your current LP value plus accumulated fees, minus what you originally deposited. If fees exceed impermanent loss, the position beats simply holding.

Does this handle Uniswap V3 concentrated liquidity?

This calculator uses the Uniswap V2 constant-product model, which spreads liquidity across all prices. V3 concentrates liquidity in a range, amplifying both fees and impermanent loss when in range and converting fully to one asset when out of range, so V3 results will differ.

Why is my LP value lower than the HODL value?

Because constant-product pools sell the appreciating asset and buy the depreciating one as prices diverge, leaving you with relatively more of the weaker asset. That rebalancing is exactly impermanent loss; trading fees are meant to compensate for it over time.

What is the Liquidity Pool Position Value Calculator?

Input your initial token amounts, entry prices, current prices, and accumulated fees to compute the current value of a constant-product liquidity position, the impermanent loss versus holding, and the net profit or loss once fees are included. For DeFi liquidity providers. It runs free in your browser on Gera Tools, with nothing uploaded.

Liquidity Pool Position Value Calculator

Name: Liquidity Pool Position Value Calculator
Creator: Gera Tools
License: https://creativecommons.org/licenses/by/4.0/

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It is easy to deposit two tokens into a Uniswap V2 pool and lose track of whether the position is actually profitable. This calculator reconstructs your position from first principles: it applies the constant-product rule to find your current token balances, values them at today’s prices, compares against simply holding, and folds in your accumulated fees to give a clear net profit or loss.

How it works

A constant-product pool holds reserves whose product is invariant. Your share rebalances as the price ratio shifts:

k = x₀ × y₀                       (your deposited token product)
price ratio p = priceX / priceY   (current, in same units)
new x = √(k / p)                  (rebalanced token amounts)
new y = √(k × p)

LP value   = new x × priceX + new y × priceY
HODL value = x₀ × priceX + y₀ × priceY
impermanent loss = LP value − HODL value   (≤ 0)
net P&L    = LP value + fees − initial deposit value

The square-root rebalancing is the constant-product invariant at work: the pool automatically trims your holding of whichever asset has risen and adds to the one that has fallen.

Worked example

For example, deposit 1 ETH at 2,000 and 2,000 USDC (4,000 total deposited). If ETH rises to 4,000:

Pool rebalances to roughly 0.707 ETH and 2,828 USDC
LP value: 0.707 × 4,000 + 2,828 = approximately 5,656
HODL value: 1 × 4,000 + 2,000 = 6,000
Impermanent loss: approximately −344 (about 5.7% of HODL value)

If you have earned 400 in fees over the same period, the net result is 5,656 + 400 − 4,000 = +2,056 versus a HODL gain of 2,000. The fee income more than covered the impermanent loss in this case, but that depends entirely on trading volume in the pool.

What the fee income variable means

Trading fees are the mechanism that is supposed to compensate liquidity providers for impermanent loss. Whether they actually do depends on the pool’s fee tier and trading volume relative to the price divergence. High-volume, low-volatility pairs (stablecoin pairs, ETH/WBTC) tend to accumulate fees faster relative to impermanent loss. High-volatility pairs (small-cap altcoins) often have the opposite profile.

The fee income field in this calculator is intentionally manual: you need to read it from the pool protocol or your position manager, because the constant-product formula cannot derive it from prices alone.

V2 versus V3

This calculator models the Uniswap V2 constant-product model, which spreads your liquidity uniformly across all possible prices. Uniswap V3 lets you concentrate liquidity within a price range, amplifying fee income (and impermanent loss) when the price stays in range, but converting your entire position to one token when it moves out of range. The formulas differ significantly for V3 positions.