🧮 Liquidity Provision Calculators & Tools
Calculating potential returns, impermanent loss, and optimal price ranges is essential for successful liquidity provision. The right tools can help you make informed decisions, backtest strategies, and understand the risks before committing capital.
This guide covers the best calculators and tools available for liquidity providers across different protocols and chains.
Why Use Calculators?
Before diving into specific tools, it's important to understand what calculators can and can't do:
What Calculators Help With:
- Estimating potential returns based on historical volume and fee rates
- Understanding impermanent loss at different price movements
- Comparing strategies (narrow vs. wide ranges, different fee tiers)
- Backtesting historical performance of hypothetical positions
- Visualizing how price movements affect your position
⚠️ What Calculators Can't Predict:
- Future volume - past performance doesn't guarantee future fees
- Routing behavior - which pools aggregators will select
- Market volatility - sudden price movements can invalidate assumptions
- Protocol changes - upgrades, fee adjustments, or new competitors
Bottom line: Calculators are essential tools for planning, but they're based on assumptions. Always monitor your positions and adjust as market conditions change.
Yield Forecast Calculator
👉 Yield Forecast Calculator - Advanced annual earnings simulator with variable daily APRs
Model complex market conditions including weekday/weekend variance and volatility spikes. Unlike simple APR calculators, this tool simulates real-world trading patterns where:
- Weekends typically see lower volume (and lower fees) than weekdays
- High volatility periods can generate significantly more trading fees
- Market conditions affect LP returns differently
Perfect for setting realistic expectations and planning your liquidity provision strategy.
Impermanent Loss Calculators
Impermanent loss (IL) is one of the most critical risks in liquidity provision. These calculators help you understand how price movements will affect your position.
📊 Standard 50/50 Pool Calculator
For traditional constant product AMMs (Uniswap V2, SushiSwap, Raydium standard pools) where liquidity is spread across the entire price range.
👉 Use our built-in Impermanent Loss Calculator
This calculator is embedded directly on our Risks page and works for standard 50/50 pools.
🎯 Concentrated Liquidity Calculator
For concentrated liquidity positions (Uniswap V3/V4, Orca Whirlpools, Meteora DLMM) where you provide liquidity within a specific price range.
👉 Use our built-in Concentrated Liquidity IL Calculator
The calculation is more complex because:
- In-range positions: You earn fees but still experience IL based on your range width
- Out-of-range positions: You stop earning fees and are fully converted to one asset
- Range width matters: Narrower ranges have less IL when in range, but higher risk of going out of range
External IL Calculators
Desmos Impermanent Loss Calculator
- Features: Visualizes impermanent loss and portfolio composition with interactive graphs.
- Best For: LPs seeking to understand the impact of price changes on their positions.
- Unique Edge: Interactive graphing tool for real-time analysis and visual learning.
CoinStats Impermanent Loss Calculator
- Features: Calculates impermanent loss based on Uniswap's constant product formula.
- Best For: LPs needing a straightforward IL calculation tool.
- Unique Edge: Simple interface with quick results, no account required.
Angle Protocol Impermanent Loss Simulator
- Features: Simulates portfolio performance in AMMs versus holding liquidity.
- Best For: LPs comparing AMM strategies with traditional holding.
- Unique Edge: Comprehensive portfolio simulation with strategy comparison.
Uniswap-Specific Calculators
Uniswap V3 and V4 use concentrated liquidity, which requires specialized calculators that account for price ranges, fee tiers, and position management.
Poolfish Uniswap V4 Calculator
- Features: Comprehensive fee return estimates, APY, APR, ROI, and impermanent loss calculations for Uniswap V4 positions.
- Best For: LPs seeking an all-in-one dashboard for performance metrics.
- Unique Edge: Supports multiple platforms beyond Uniswap V4, including PancakeSwap and SushiSwap, allowing cross-protocol comparisons.
Metacrypt Uniswap V3 Calculator & Simulator
- Features: Estimates fees, APR, and ROI; tracks volume and TVL; visualizes liquidity distribution across price ranges.
- Best For: LPs wanting detailed insights into pool dynamics and range selection.
- Unique Edge: Offers a user-friendly interface with comprehensive data visualization and historical analysis.
Heystack UNIV4 IL Calc
- Features: Calculates impermanent loss for stable/unstable LPs and estimates yields based on days outside of range.
- Best For: LPs managing positions in stablecoin pairs like ETH/USDC.
- Unique Edge: Tailored for stablecoin LPs with advanced yield estimation and out-of-range impact analysis.
How to Use Calculators Effectively
1. Start with Impermanent Loss
Before calculating potential returns, understand your IL risk:
- Use our built-in calculators to see IL at different price movements
- Test multiple scenarios: What if price doubles? What if it halves?
- Compare narrow vs. wide ranges: See how range width affects IL
2. Estimate Fee Returns
Once you understand IL, estimate potential fees:
- Use historical volume data from DeFiLlama or protocol analytics
- Account for fee tier competition: Lower fee tiers may capture more volume
- Consider routing behavior: Not all volume routes through your pool
3. Calculate Net Returns
Combine IL and fees to see net returns:
- Best case: High fees, price stays in range, minimal IL
- Worst case: Low fees, price moves out of range, significant IL
- Realistic case: Average fees, moderate price movement, some IL
4. Backtest Your Strategy
Use historical data to see how your strategy would have performed:
- Did similar ranges work in the past?
- How often did price move out of range?
- What were the actual fee returns?
Calculator Limitations
While calculators are invaluable tools, they have important limitations:
Historical Data ≠ Future Performance
Volume and price movements are unpredictable. A calculator showing 50% APR based on last month's volume doesn't guarantee future returns.
Routing Assumptions
Calculators often assume all volume routes through your pool. In reality, aggregators split volume across multiple pools, fee tiers, and even chains.
Gas Costs
On Ethereum, gas costs can significantly impact returns, especially for small positions or frequent rebalancing. Calculators may not account for these costs.
Protocol Changes
Protocols evolve. Fee structures change, new competitors emerge, and routing algorithms improve. What worked yesterday might not work tomorrow.
Best Practices
Do:
- Use multiple calculators to cross-reference results
- Test multiple scenarios (bull, bear, sideways markets)
- Start conservative - assume lower fees and higher IL than calculators suggest
- Monitor your positions - calculators are planning tools, not set-and-forget solutions
- Account for gas costs on Ethereum when calculating net returns
❌ Don't:
- Rely solely on calculators - they're tools, not guarantees
- Chase the highest APR - high returns often mean high risk
- Ignore impermanent loss - it can erase fee gains
- Assume historical volume continues - markets change
- Forget about gas costs on Ethereum - they matter for small positions
Integrating Calculators into Your Strategy
For Passive LPs (Ethereum):
- Use IL calculators to understand risk at different price levels
- Use fee estimators to set realistic return expectations
- Choose wide ranges to minimize rebalancing and gas costs
- Set it and forget it - monitor monthly, not daily
For Active LPs (Solana):
- Use range calculators to optimize capital efficiency
- Monitor position analytics daily using protocol dashboards
- Adjust ranges as price moves to stay in range
- Compare strategies using backtesting tools
Related Resources
- Yield Forecast Calculator - Simulate annual earnings with variable daily APRs
- Risks of Providing Liquidity - Understand IL and other risks with our built-in calculators
- Uniswap V4 Guide - Learn about concentrated liquidity and fee tiers
- Liquidity Provision Strategies - Explore passive vs. active strategies
- Why We Don't Chase Meme Coins - Understand why high APRs can be misleading
💡 Remember: Calculators help you plan, but liquidity provision requires ongoing monitoring and adjustment. Use these tools to make informed decisions, but always stay engaged with your positions.