Concentrated Liquidity Range Calculator
Concentrated liquidity pools let you focus your capital in a price band instead of spreading it across all prices. A tighter band earns more fees per dollar while in range but leaves the range with smaller price moves. This calculator takes the current price and a band width percentage, computes the lower and upper bounds, and estimates a relative capital efficiency multiplier versus a full-range position. It reports the geometry of your position so you can weigh concentration against the cost of more frequent rebalancing.
Range geometry formula
Lower bound = price * (1 - lower % / 100)
Upper bound = price * (1 + upper % / 100)
Range width % = (upper bound - lower bound) / price * 100
Efficiency multiplier = 1 / (1 - (lower bound / upper bound) ^ 0.25)
The efficiency multiplier approximates how much more fee density a concentrated range provides versus a full-range position. Tighter bands push the multiplier higher but leave the range sooner.
Things to know
- A tighter band raises fee density while in range but exits the range with smaller price moves.
- Out-of-range positions earn no fees and sit fully in one asset until rebalanced.
- Each rebalance costs gas and can realize impermanent loss.
- Actual fees depend on trading volume and fee tier, which this tool does not predict.
- The multiplier is a geometric approximation, not a guarantee of returns.
Concentrated liquidity: frequently asked questions
What is concentrated liquidity?
Concentrated liquidity lets a provider supply capital within a chosen price range rather than across all prices. Inside the range the position earns fees and behaves like deeper liquidity; outside it, the position stops earning and becomes fully one asset. A tighter range concentrates capital and raises fee efficiency but exits the range more easily.
How is capital efficiency measured?
Capital efficiency compares the fees a concentrated range earns to a full-range position with the same capital. A common approximation is the square root of the upper price divided by the square root of the lower price, used to derive a multiplier of roughly 1 divided by (1 minus the fourth root of lower over upper). This tool reports a simplified efficiency multiplier based on the chosen band width.
What is the band width percentage?
Band width is how far the lower and upper bounds sit from the current price, in percent. A plus or minus 10 percent band means the lower bound is 10 percent below and the upper bound 10 percent above the current price. Narrower bands mean higher concentration and higher rebalancing frequency.
Why does a tighter range need more management?
Price only has to move a little to leave a tight range, after which the position earns no fees until you rebalance. Tighter ranges therefore demand more frequent monitoring and incur more gas and potential impermanent loss on each rebalance. Wider ranges earn lower fee density but stay in range longer.
Does this predict my fee income?
No. Fee income depends on trading volume, the fee tier, and how long price stays in your range, none of which can be assumed. This tool computes the geometry of your range: bounds, width, and a relative efficiency multiplier. Use protocol analytics for realized fee data.
Official sources
- U.S. Securities and Exchange Commission: Investor.gov on crypto assets.
- U.S. Internal Revenue Service: Digital Assets.
Reviewed by the CalculatorHub team, edited by James Graham, 17 June 2026. See our methodology.