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.

Liquidity Pool Position Value Calculator

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.

Example and tips

Deposit 1 ETH at 2,000 and 2,000 USDC (4,000 total). If ETH rises to 4,000, the pool rebalances to roughly 0.707 ETH and 2,828 USDC, an LP value near 5,657 versus a HODL value of 6,000 — about 343 of impermanent loss. If you have earned 400 in fees, the position is net ahead of holding. Track your fee income diligently: in active pools it is the difference between liquidity provision being a winning or losing strategy, and it is the one variable this model cannot infer on its own.