About the Concentrated Liquidity Calculator
This concentrated liquidity calculator plans a Uniswap v3-style liquidity position (also used by PancakeSwap v3, Aerodrome Slipstream and similar DEXs). Enter how much you want to deposit, the current price and your lower and upper price bounds, and it returns exactly how much of each token to deposit, your capital efficiency compared with a full-range position, and what the position is worth if the price ends at either edge of the range.
Concentrating liquidity in a narrow range earns more fees per dollar while the price stays inside it, but the position becomes 100% of the weaker token once the price leaves the range and stops earning. The value chart compares the position with simply holding the tokens you deposited, which shows the impermanent loss you take on in exchange for fees.
The fee estimate starts from the pool’s average fee yield (daily volume × fee tier ÷ TVL) and scales it by how concentrated your range is compared with a typical LP range that you choose. It assumes the price stays inside your range and volume holds steady, so treat it as a rough guide. Prices are quoted as token1 per token0 (for example USDC per ETH) and token1 is assumed to be worth $1.
With the default inputs, the estimated fee apr (while in range) is 8.36%. Change any value above to recalculate instantly.
How to use the concentrated liquidity calculator
- 1Enter the total value you plan to deposit and the current pool price.
- 2Set your lower and upper price bounds.
- 3Choose the fee tier and enter the pool’s daily volume and TVL from an analytics site.
- 4Set how concentrated other LPs typically are, then read the estimated fee APR.
- 5Deposit the token amounts shown, and check the value at each bound before committing.
Formula and method
Uniswap v3 positions are defined by liquidity L between two prices. When the current price P is inside the range [Pa, Pb], the position holds x of token0 and y of token1 given by the formulas above (from the Uniswap v3 whitepaper). The calculator finds the L your deposit can buy at the current price, then the exact token amounts. Below the range the position is all token0; above it, all token1.
Capital efficiency compares your L with the liquidity the same deposit would provide across the full price range (Deposit ÷ 2√P). Fee APR starts from the pool’s average yield, daily volume × fee tier × 365 ÷ TVL, and multiplies it by your efficiency divided by the efficiency of a typical ± range you choose — a simple way to estimate your share of fees while the price stays in range.
- P, Pa, Pb
- Current, lower and upper price (token1 per token0)
- L
- Liquidity of the position
- x, y
- Amounts of token0 and token1 in the position
Worked examples
$10,000 ETH/USDC position from $2,500 to $3,600
$3,000 is the geometric midpoint of $2,500–$3,600, so the deposit splits evenly: 1.6667 ETH and 5,000 USDC. The position has 11.5× the liquidity of a full-range deposit. The pool earns 6.08% on average (50M × 0.05% × 365 ÷ 150M); scaled by your range versus a typical ±25% range, the estimate is about 8.4% APR while in range. At $2,500 the position would be worth $8,731, at $3,600 $10,477.
Price already below the range
At $2,400 the price is under the $2,500 lower bound, so the whole $10,000 goes in as 4.1667 ETH. The position earns nothing until ETH climbs back above $2,500.
Wide range from $1,500 to $6,000
A range from half to double the current price is about 3.4× as efficient as full range — less concentrated than a typical ±25% LP, so the fee estimate drops to about 2.5% APR. In exchange the position stays in range through much larger moves, though at $1,500 it would be worth about $6,036.
Frequently asked questions
What is concentrated liquidity?+
In Uniswap v3-style pools, liquidity providers choose a price range for their capital instead of spreading it from zero to infinity. Liquidity is only used, and only earns fees, while the price is inside that range, which makes each dollar far more productive.
What happens when the price leaves my range?+
Your position converts entirely into one token — the one that fell in value relative to the other — and stops earning fees. You can wait for the price to return, or withdraw and open a new range around the new price.
How do I choose a Uniswap v3 range?+
Narrow ranges earn more fees but go out of range more often and suffer bigger impermanent loss. Wider ranges are calmer and need less rebalancing. Many LPs use ranges tied to recent volatility, and stable pairs use very tight ranges.
Why do I need different amounts of each token?+
The ratio depends on where the current price sits in your range. Near the lower bound the position is mostly token0; near the upper bound it is mostly token1. Only a range centred geometrically on the price needs equal values of both.
Is concentrated liquidity riskier than a normal pool?+
Yes, in the sense that impermanent loss is magnified within the range by the same factor as fee income. A concentrated position can underperform holding significantly if the price trends strongly in one direction.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.