DeFi Yield Farming Calculator
Calculate returns from DeFi yield farming including impermanent loss and liquidity rewards
About this calculator
The DeFi Yield Farming Calculator helps you evaluate potential returns from providing liquidity to decentralized finance protocols. It factors in both the rewards you earn from liquidity provision and the impermanent loss you might face due to price fluctuations of your deposited tokens. This comprehensive analysis enables you to make informed decisions about which liquidity pools offer the best risk-adjusted returns, helping you optimize your DeFi investment strategy and understand the true profitability of yield farming opportunities.
How to use
Enter your initial token amounts, the liquidity pool's APY, and expected price changes for both tokens in the pair. Specify your investment duration and any additional reward tokens. The calculator will compute your total returns, accounting for farming rewards, fees earned, and potential impermanent loss to show your net profit or loss.
Frequently asked questions
What is impermanent loss in yield farming?
Impermanent loss occurs when token prices in your liquidity pool change relative to each other, reducing your holdings' value compared to simply holding the tokens.
How accurate are DeFi yield farming return predictions?
Predictions are estimates based on current rates and assumed price movements. Actual returns vary due to changing APYs, market volatility, and protocol risks.
Should I consider gas fees when yield farming?
Yes, gas fees for entering, exiting, and claiming rewards can significantly impact small investments. Factor these costs into your profitability calculations.