Concentrated Liquidity (Uniswap V3) Calculator
Free Uniswap V3 concentrated liquidity calculator. Compute capital efficiency, fee income, IL at range edges. Compare tight vs wide range strategies.
Estimates are approximate. Actual fees depend on swap volume distribution, MEV, and competing LPs. Tight ranges concentrate IL — out-of-range = no fees + max IL.
How to use Concentrated Liquidity (Uniswap V3) Calculator
The Concentrated Liquidity (Uniswap V3) Calculator is designed to turn raw assumptions into a clear decision framework in seconds. Start by entering conservative values first, then run a second pass with aggressive assumptions to understand your outcome range. This two-pass method gives you a realistic baseline and an upside case before you commit capital. In practice, strong decision-making comes from comparing scenarios rather than trusting one single output. For that reason, this calculator updates in real time and allows fast iteration so you can test multiple cases with minimal friction.
A reliable workflow is: define your objective, set your constraints, enter values, review outputs, then validate with one related calculator. For example, if your target result looks attractive, verify it against <a href="/break-even-calculator/">break-even</a>, fee, and <a href="/tax-calculator/">tax</a> assumptions before acting. This process prevents overconfidence and helps you avoid weak setups where small hidden costs can erase expected edge. By using repeatable steps, you make your analysis consistent and easier to improve over time.
Input guide and assumptions
Input quality determines output quality. Use exchange-confirmed prices when possible, and avoid relying on a single quote snapshot during high volatility. If your scenario includes fees, funding, spread, or slippage, include them explicitly — a quick pass through the <a href="/profit-calculator/">profit calculator</a> with realistic friction will reveal whether your edge survives after costs. Even small percentage costs compound quickly in leveraged or high-frequency conditions. A robust habit is to increase friction assumptions slightly above your best-case expectation to stress-test the model. If the setup still works with conservative assumptions, execution risk becomes more manageable.
Time horizon matters as much as price assumptions. A strategy that looks viable on a one-week horizon can fail over a three-month period due to cumulative costs and market drift. For longer holds, run a parallel check with the <a href="/dca-calculator/">DCA calculator</a> to see how staged entries compare to a single lump-sum commitment. Align your inputs with your intended hold period and re-check when conditions change materially. If market structure changes, rerun the same scenario rather than forcing old assumptions into a new environment. This discipline keeps your planning adaptive and reduces avoidable losses from stale numbers.
Reading your LP position
Concentrated liquidity (Uniswap V3 model) deposits liquidity into a price range instead of all prices (V2 style). Capital efficiency multiplies fees earned by 5-50x compared to V2 — but only when price stays in range. If price exits range, you earn 0 fees and hold 100% of one asset (impermanent loss is realized).
Capital efficiency formula: efficiency = sqrt(P_upper) / (sqrt(P_upper) - sqrt(P_lower)). Tight range (±5%) gives ~20x efficiency; medium (±20%) ~5x; wide (±50%) ~2x. Daily fee income = position_share × pool_volume × fee_tier — multiplied by efficiency factor when in range.
Range strategy scenarios
ETH/USDC tight range: $10K deposit, ETH at $2,400, range $2,280-$2,520 (±5%). Capital efficiency ~20x. Pool TVL $50M, daily volume $500M, fee 0.05%. Daily fees: position_share × $500M × 0.05% = $7.50/day in-range = $2,737/year if always in range. Realistic 50-70% in-range time: $1,368-$1,916/year (14-19% APY).
Stable pair (USDC/USDT): $10K deposit, range 0.999-1.001 (ultra tight). Efficiency 1000x+. Pool TVL $100M, daily volume $50M, fee 0.01%. Position share inflated by efficiency: ~$5/day fees = $1,825/year (18% APY). Lower IL than volatile pairs but still possible with depeg events.
Risk and execution checklist
- Before opening LP position: 1) Compare pool's 7-day APY history (TVL × volume × fee, divided by your position size). 2) Check IL backtest for proposed range across 30 days. 3) Verify gas costs (range adjustments cost $20-200 each on Ethereum L1; cheaper on L2). 4) Set rebalancing rules (when to widen range or close).
- Position size rule: ranges become irrelevant if you have <$1K position on Ethereum L1 (gas eats fees). Minimum profitable: $5K-$10K on L1, $500-$1K on Arbitrum/Base/Polygon.
Common V3 LP mistakes
- Setting range too tight without monitoring. ETH ±2% range earns max fees but exits range within hours of normal volatility. You then hold 100% of one asset and IL is locked. Wider range (±15-25%) trades fee yield for stability.
- Ignoring impermanent loss math. If ETH rises 50% from $2,400 to $3,600, your liquidity position has 50% less ETH (sold to pool buyers) and gained USDC. Compared to HODL, IL is ~5.7%. Fees earned must exceed IL to be profitable. Use <a href="/impermanent-loss-calculator/">IL calculator</a> for range-specific analysis.
Concentrated LP return benchmarks
Typical V3 LP returns 2024-2026: ETH/USDC 0.05% pool 12-25% APY, ETH/BTC 0.05% 8-15%, stable pairs 5-12%, exotic pairs 30-100% (high risk). IL typically eats 30-50% of gross fee income; net APY = gross APY × (1 - IL_factor).
Volume/TVL ratio (capital efficiency proxy): healthy V3 pools have daily volume / TVL ratio of 0.3-2.0. Pools below 0.1 are dead (low fee income). Pools above 5.0 may have toxic flow (arbitrage extraction, low IL adjustment time).
Execution templates you can reuse
Position opening workflow: 1) Pick pool (ETH/USDC most popular). 2) Set range based on volatility expectations (use historical 30-day price range as baseline). 3) Calculate token amounts needed (asymmetric — depends on current price within range). 4) Approve tokens, mint position NFT. 5) Monitor daily, rebalance weekly or on range exit.
Active management: use tools like Krystal, DefiLlama Pools, or custom dashboards to track in-range %, fees earned, current IL. If in-range time drops below 50% for 3+ days, widen range. If pool volume dries up, withdraw and rotate.
Data hygiene and model maintenance
Track each LP position: open date, range, deposit amounts, fees earned, IL realized at close. After 5+ positions, you'll see which range strategy actually works for your capital and risk tolerance.
Gas budget tracking: range adjustments on L1 cost $20-200 each. If you adjust 4x/month at $50 each = $200/month. Position must earn >$2,400/year just to cover gas — meaning $10K minimum position to be cost-effective on L1, or migrate to L2.
Final validation before capital deployment
Sanity check: $10K deposit, ±20% range (2,280-2,880 around $2,400 ETH). Efficiency ≈ 5x. Pool $50M TVL, $500M daily volume, 0.05% fee → daily fees on ALL liquidity = $250K. Your position share = $10K × 5 / $50M = 0.1%. Daily fees = $250 × 0.1% × 5 = $1.25 in-range. Annualized at 70% in-range = $320 = 3.2% APY (modest pool, high competition).
Post-period validation: actual fees collected (visible in position UI) should match your share × pool fees in same period × in-range %. If actual is 30%+ lower than expected, your position spent significant time out of range — review range width and rebalance more aggressively.
Frequently asked questions
What is concentrated liquidity in Uniswap V3?
Concentrated liquidity lets you deposit into a specific price range instead of the full price curve. Capital is 5-50× more efficient than V2 — you earn the same fees with less capital, but only when price stays within your chosen range. Outside range, you earn zero fees and hold 100% of one asset.
How do I choose the right price range?
Use historical 30-day volatility as a baseline. Tight ranges (±5%) maximize fee income when in range but exit quickly (60-80% out-of-range time). Wide ranges (±25%) stay in range 80-95% of the time but earn fewer fees per dollar. Sweet spot for ETH/USDC: ±15-20% rebalanced monthly.
What is impermanent loss in concentrated liquidity?
IL is the difference between holding LP position vs HODLing the underlying tokens. In V3, IL is concentrated — when price exits your range, you hold 100% of one token while the other token left the pool. For ETH/USDC ±20% range with 50% ETH move, IL is approximately 5-7%. Fees must exceed IL for net profit.
What returns can I expect from concentrated liquidity?
Typical returns on stable pairs (USDC/USDT): 5-12% APY with minimal IL. ETH/USDC: 12-25% APY gross, 5-15% net after IL. Volatile pairs (ETH/BTC, exotic pairs): 30-100%+ APY gross but IL often consumes 40-60% of fees. L1 Ethereum requires $5K+ position to be gas-efficient; L2s (Arbitrum, Base) work with $500-1K.
How often should I rebalance my concentrated liquidity position?
Active management workflow: monitor daily, rebalance when in-range time drops below 50% for 3+ days. Typical rebalance cadence: monthly for stable pairs, bi-weekly for volatile pairs, weekly during high volatility. Each rebalance costs gas ($20-200 on L1, $0.50-5 on L2). Account for gas in your APY calculation.
Is concentrated liquidity profitable for retail traders?
Profitable when: position size > $5K on L1 or $500 on L2, you actively rebalance, and you pick pools with healthy volume/TVL ratio (0.3-2.0). Unprofitable when: gas costs eat 30%+ of fees, you leave positions out-of-range for weeks, or you pick pools with toxic flow (high arbitrage extraction). Realistic net APY: 5-20% for managed positions.
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