Liquidity Provider APR Calculator
When you deposit tokens into a decentralized exchange (DEX) liquidity pool, you earn a share of the trading fees proportional to your share of the pool. This calculator converts your raw fee earnings into an annualized APR so you can compare different pools on a like-for-like basis. Enter the total fees you earned over a measurement period, the value of the liquidity you provided at the start of that period, and the number of days the position was open. The result is the gross fee APR, before accounting for impermanent loss or gas costs. Note that past APRs are not a guarantee of future performance, as fee income depends entirely on pool trading volume.
LP APR formula
Period Return = Fees Earned / Liquidity Provided
APR = Period Return * (365 / Days) * 100
Where fees earned and liquidity provided are measured in the same currency (typically USD). The 365/days factor scales the period return to a full year.
Understanding LP returns
- Fee APR is gross return before impermanent loss. Depending on token volatility, impermanent loss can significantly reduce or even eliminate net returns.
- Higher fee tiers (e.g., 1% vs 0.05% on Uniswap v3) do not always mean higher APR; lower-fee pools often have much higher volume.
- Concentrated liquidity positions (Uniswap v3 style) can amplify fee APR by narrowing the price range, but the position stops earning fees if the price moves outside the range.
- Always account for gas costs when evaluating small positions, as transaction fees can dominate returns on Ethereum mainnet.
Liquidity provider APR: frequently asked questions
What is liquidity provider APR?
Liquidity provider APR is the annualized percentage return earned from trading fees on a decentralized exchange (DEX). It is calculated as (fees earned / liquidity provided) * (365 / days in period) * 100.
Does LP APR include impermanent loss?
No. This calculator shows gross fee APR only. Impermanent loss reduces your effective return. To estimate net returns, subtract impermanent loss from the fee APR. Always analyze both components separately.
Why does my APR vary over time?
Trading fee income depends on pool trading volume. High-volume periods boost APR while low-volume periods reduce it. The APR displayed here is based on the specific period you enter and may not reflect future performance.
How do I find my fees earned and liquidity provided?
Most DEX interfaces (Uniswap, Curve, Balancer) display your position value and accrued fees. You can also query your LP token position via on-chain explorers or portfolio trackers that aggregate DeFi data.
What is a typical LP APR in DeFi?
APRs vary widely. Stablecoin pools on major protocols often yield 1-10% APR in fees. Volatile asset pools with high volume may yield 20-100%+ but carry significant impermanent loss risk. No historical APR guarantees future returns.
Official sources
- Ethereum Foundation: Decentralized Finance (DeFi).
- Uniswap Foundation: Uniswap v3 Core Whitepaper.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.