LP return versus HODL
The relevant comparison is the final LP position against the value of holding the original assets over the same price path. Token-denominated gains alone can hide underperformance.
Compare a constant-product liquidity position with simply holding the two assets.
Who this is for: Someone who holds — or is about to open — a liquidity position, and can supply a horizon and a view on the pool's volume. Both are yours to estimate; neither is predicted here.
V2 / 50:50 scope
Position value used at entry.
Denominator for your estimated LP share.
Token price when liquidity was supplied.
Paired asset is assumed stable.
Held constant for the selected period.
Trading fee paid to the pool before protocol share.
Share of pool fees not retained by LPs.
No annualization or compounding.
External rewards valued at realization.
Total costs across entry, management and exit.
How this calculation works — the formula, its inputs, what it assumes, and what it does not establish.
Compare liquidity-provider returns against holding after impermanent loss, earned trading fees, incentives and gas costs. Fees can offset impermanent loss, but they do not guarantee LP outperformance.
The relevant comparison is the final LP position against the value of holding the original assets over the same price path. Token-denominated gains alone can hide underperformance.
V2 and V3 positions can both earn fees. Real fee income depends on volume routed through the position, fee tier, active liquidity range and the position's share of active liquidity.
A full-range constant-product estimate does not reproduce every V3 position. Concentrated ranges change capital efficiency, fee exposure and out-of-range behavior.
Combine impermanent loss, earned fees and position value into one comparable net return. MoonMath labels the data basis for this tool as Observed, Formula, Model.
No. The LP Net Return Calculator is an educational scenario tool, not financial advice, a recommendation, or a forecast. Provider coverage, liquidity, routing, fees and market conditions can make real outcomes materially different.
This calculator includes entered fee income, incentives and gas costs. The fee input remains an assumption unless complete position-level fee data is available.