Crypto ROI & Impermanent Loss Calculator
Evaluate return on investment (ROI) for digital asset trades and quantify liquidity pool impermanent divergence loss against simple buy-and-hold.
ROI Calculation Parameters
Measure total percentage return and multiple on investment
Total fiat or stablecoin capital invested initially
Current liquidated value or exit proceeds
Return on Investment (ROI)
Awaiting inputEnter initial investment and current value above to calculate ROI
Results, statistical ratios, and detailed amortization ledgers will appear here once values are provided.
ROI % = ((Ending Value - Initial Investment) / Initial Investment) × 100
Return on investment is a standardized performance measure used to evaluate the efficiency of an investment or compare the efficiency of several different investments.
Calculation Methodology & Formula
ROI computes the percentage capital gain or loss relative to the initial purchase outlay. Impermanent Loss applies the constant-product automated market maker (x * y = k) model to calculate pool divergence relative to holding assets outside the pool.
ROI = ((V_end - V_init) / V_init) × 100 | IL% = (2√r / (1 + r) - 1) × 100Worked Example: AMM 2x Price Divergence Scenario
Deposited $10,000 into a 50/50 ETH-USDC pool. ETH price doubles from $2,000 to $4,000 (r = 2).
Holding 50/50 outside the pool yields $15,000. The automated market maker rebalances to $14,428.09. The 5.72% difference is the impermanent divergence loss.
Technical Constraints & Limitations
- Impermanent loss calculations assume a standard 50/50 constant-product pool (e.g. Uniswap v2 / Sushiswap) and do not model concentrated liquidity ticks (Uniswap v3).
- Excludes accumulated trading fee APY and liquidity mining reward tokens that frequently offset impermanent loss in active pools.
- ROI calculations exclude on-chain gas costs, bridging slippage, and capital gains taxation.