Uniswap v3 position calculator for fee returns, APY, APR, and ROI. Calculate liquidity provider fees, yields, and impermanent loss based on your liquidity provided.
Total USD value of your liquidity position
The fee percentage charged on trades in this pool
The lowest price at which your liquidity will be active
The highest price at which your liquidity will be active
How much money was traded in this pool in the last 24 hours
How many days you plan to keep your liquidity in the pool
Total value of all liquidity in this pool (optional - we'll estimate if not provided)
Uniswap v3 is like a digital marketplace where people trade cryptocurrencies. You can earn money by lending your coins to this marketplace. Think of it like lending money to a bank, but instead of a bank, it's a computer program that helps people trade coins. The more people trade, the more money you earn from your loan.
You pick a price range where your money will work (like $1800-$2200 for Ethereum). Your money only earns fees when the coin price is between these numbers. If you pick a smaller range, you earn more money per dollar you put in, but you need to check and move your money more often to keep it working.
There are four different ways to earn money: 0.01% (safe coins like USDC/USDT), 0.05% (similar coins),0.30% (regular coin pairs), and 1% (risky/new coins). The riskier the coins, the more money you can earn, but you also have a higher chance of losing money when prices change a lot.
Every time someone trades coins, they pay a small fee. This fee gets split among everyone who lent their money. Your share depends on how much money you put in compared to everyone else. More people trading means more money for you. The money you earn gets added to your account automatically.
APR is your simple yearly return (like 100% per year). APYincludes the extra money you earn by putting your daily earnings back to work. APY is always higher because you earn money on your earnings. For example, 100% APR becomes about 171% APY when you reinvest daily.
By putting your money in a smaller price range (like ±10%), you can earn about 20 times more money than spreading it across all possible prices. However, if the coin price moves outside your chosen range, you stop earning money and might lose money compared to just holding the coins.
Enter the total dollar amount you want to lend. For example: $10,000 total, which might be split into about $5,000 worth of Ethereum and $5,000 worth of USDC. This is like telling the calculator "I want to lend $10,000 to earn fees."
Pick how much money you want to earn from each trade. Check which option has the most people trading and money in it.0.01% for safe coins (USDC/USDT), 0.30% for regular coin pairs (ETH/USDC),1% for risky or new coins.
Pick the lowest and highest prices where your money will earn fees. For example: If Ethereum is $2000, you might set $1800-$2200 (±10%). Smaller ranges mean more money but higher risk of your money stopping work. Check the current price on Uniswap before setting your range.
Find how much money people traded in this pool in the last 24 hours on Uniswap Info or websites like DefiLlama. More people trading means more money for you. Popular coin pairs like ETH/USDC often have $50M-$500M in daily trading.
How many days you plan to keep your money in the pool. 30 days (1 month) is common for testing. Longer periods show potential earnings but increase the risk of losing money when prices change. Most people who do this check and adjust weekly or monthly.
Enter the total value of all money in this pool for accurate calculations. Find this on Uniswap Info. If you skip this, we'll assume you own 1% of the pool (conservative estimate). Typical pools have $10M-$500M total money.
You'll see: Fee Returns (total money you earned), APY (yearly return with compounding),APR (simple yearly rate), ROI (return on investment %), and estimatedImpermanent Loss risk based on your price range.
This calculator assumes steady trading and prices staying within your range. Real-world results vary with market conditions. Fees are gross returns—subtract transaction costs for net profit. Always consider the risk of losing money when prices change.
Put $10,000 into an ETH/USDC pool with 0.30% fees, price range $1800-$2200, pool has $50M daily trading and $100M total money:
Result: ~$15 daily fees → ~$450/month → ~50% yearly return (before considering price change risks)
We convert the fee level number to a percentage
Example: 3000 ÷ 10000 = 0.003 = 0.3%
We calculate what percentage of the pool you own
Example: $10,000 ÷ $1,000,000 = 0.01 = 1%
We multiply trading volume by fee percentage by your share
Example: $1,000,000 × 0.003 × 0.01 = $30/day
We multiply your daily money by the number of days
Example: $30 × 30 days = $900
We calculate your yearly return without compounding
Example: ($30 × 365 ÷ $10,000) × 100 = 109.5%
We calculate your yearly return including daily compounding
Example: With daily compounding, 109.5% APR becomes about 198% APY
ROI = (Money You Earn ÷ Money You Put In) × 100
This shows your percentage return over the time period. For 30 days earning $900 on $10,000: ($900 ÷ $10,000) × 100 = 9% ROI. If you did this for a full year, it would be about 108% yearly return.
This risk is estimated based on how tight your price range is. Smaller ranges (like $1800-$2200) = higher risk (~15%). Wider ranges (like $1000-$3000) = lower risk (~2%). The actual risk depends on how far prices move from where you started. Always compare your fee earnings against this potential loss to see if it's worth it.
Your price range determines how much you earn and how much risk you take. Smaller ranges earn more money per dollar but stop working faster. Here's how to choose based on how much the prices change and how often you can check your position:
Range: $0.995 - $1.005 (±0.5%) | Fee Level: 0.01%
Very small range for maximum efficiency. Very low risk of losing money. Requires minimal checking. Expect 5-20% yearly returns depending on trading volume.
Range: ±10-20% | Fee Level: 0.3% or 0.05%
Example: ETH at $2000 → $1800-$2200 (±10%) or $1600-$2400 (±20%). ±10% = higher money but check weekly. ±20% = lower money but check monthly.
Range: ±30-50% | Fee Level: 1%
Wide ranges needed for risky assets. Example: Token at $10 → $7-$15 (±30%). Higher money helps compensate for higher risk of losing money. Check monthly or when out of range.
Range: ±5-10% | Check: Daily/Weekly
For people who can check daily. Small ranges = 2-3x more money but requires daily monitoring and frequent adjustments. Transaction costs add up—only profitable on cheaper networks (Arbitrum, Optimism, Polygon) or with large amounts ($50K+).
Range: ±20-40% | Check: Monthly/Quarterly
For people who can't check often. Wider ranges earn 30-50% fewer money but stay active longer. Set price alerts at boundaries. Adjust only when out of range or monthly. Good for most users.
Range: 0 to ∞ | Check: Never
Available in v3 but not recommended. You earn money at all prices but with terrible efficiency (90-95% less than focused ranges). Only use for very risky pairs where adjusting is impractical.
Target pools with $10M+ daily trading. More trading = more fees. Check Uniswap Info, DeFiLlama, or Dune Analytics. ETH/USDC, ETH/USDT, WBTC/ETH are consistently high-volume. Avoid pools with <$100K daily trading.
Use tools like Revert Finance or DefiEdge to analyze optimal ranges. Look at where 80% of recent trading occurred. Focus your money there. A ±15% range typically captures 70-80% of trades for ETH pairs.
Don't blindly choose 0.3%. Check which level has the most money and trading for your pair. Sometimes 0.05% ETH/USDC pools outperform 0.3% due to 6x more trading. Compare fee levels on Uniswap analytics before depositing.
On Ethereum mainnet, transaction costs for creating/adjusting can be $50-200. Use cheaper networks (Arbitrum, Optimism, Polygon) where costs are $0.10-$2. This allows frequent adjustments and makes smaller amounts ($1K-$10K) profitable.
Services like Arrakis, Gamma, Visor, and Charm automatically adjust your position for 10-20% of fees. They use algorithms to maximize time in range and optimize ranges. Great for passive liquidity providers or complex strategies.
Fees aren't automatically reinvested in v3. Manually collect and re-add to your position monthly (or when > $100 on mainnet). This compounds your returns. Some position managers auto-compound for you. Compounding increases your yearly returns significantly.
Setup: $20,000 in ETH/USDC 0.05% on Arbitrum. ETH at $2000, set range $1850-$2150 (±7.5%). Pool has $100M liquidity, $30M daily trading.
Returns: ~$40-50/day fees = $1,200-1,500/month = 72-90% yearly return. Adjust bi-weekly ($1 transaction cost). Collect fees monthly.
Result: After factoring ~3-5% risk over 6 months, net yearly return = 60-75%. This beats most staking and yield farming strategies. Key success factors: Cheaper network for low costs, tight range for efficiency, high-volume pool, active management.
The #1 risk for liquidity providers. If ETH goes from $2000 to $3000, you'd have earned more just holding. This loss becomes "permanent" when you withdraw. Example: 2x price change = ~5.7% loss, 4x = ~20% loss. Your fees must exceed this loss to profit. Smaller ranges increase this risk.
If price exits your range, you earn ZERO fees and are 100% in one asset. Example: Set range $1800-$2200, ETH pumps to $2500. You now hold only USDC, missing the rally and earning no fees. Must adjust to resume earning.
Uniswap v3 is audited but complex. Bugs, exploits, or hacks could drain funds. The protocol holds billions making it a target. Only provide liquidity you can afford to lose. Uniswap v3 has been tested since May 2021 with no major exploits.
On Ethereum mainnet, creating a position costs $50-200, collecting fees $20-50, and closing $30-100. Frequent adjusting erases profits on small positions. Use cheaper networks or only provide liquidity with $20K+ on mainnet. Track costs vs fees earned.
New token pools often promise 1000%+ yearly returns. Most are scams. Scam tokens can dump 99% in days. Stick to established tokens (ETH, WBTC, major stablecoins, top 50 coins). If yearly returns > 200%, it's likely unsustainable.
While earning 50% yearly returns sounds great, if ETH does 3x in that period, you'd have made more holding. Providing liquidity works best in sideways/ranging markets. In strong trends (up or down), holding outperforms. Consider market conditions.
Uniswap v3 is not beginner-friendly. You need to understand price ranges, capital efficiency, impermanent loss, fee levels, and when to adjust. Mistakes are costly. Start small ($100-1000) to learn. Use simulators and backtesting tools first.
Multiple fee levels split liquidity. A pool with $200M total value might have $100M in 0.3%, $80M in 0.05%, $20M in 1%. Check which level has most trading. Providing to the wrong level means low fees despite appearing liquid.
Providing liquidity is NOT passive income. It requires active management, constant monitoring, and understanding of complex DeFi mechanics. You can lose money even when earning fees if impermanent loss exceeds fee income. Only provide liquidity with capital you can afford to lose and time to manage actively. Consider your opportunity cost, transaction costs, and impermanent loss risk before depositing. For most users, simple holding or staking may be better risk-adjusted returns.
Total Value: $100M+ | Trading: $50M-200M daily | Yearly Return: 8-15% |Risk: Minimal. Range: $0.995-$1.005. Best for risk-averse liquidity providers. Very stable returns.
Total Value: $50M+ | Trading: $20M-80M daily | Yearly Return: 5-12% |Risk: Minimal. Similar to USDC/USDT. Lower trading but still solid stable returns.
Total Value: $200M+ | Trading: $100M-500M daily | Yearly Return: 15-30% |Risk: Low-Moderate. Range: ±10-15%. Great for semi-passive liquidity providers. High trading compensates risk.
Total Value: $150M+ | Trading: $50M-200M daily | Yearly Return: 25-50% |Risk: Moderate. Range: ±10-20%. Active management. Adjust bi-weekly.
Total Value: $80M+ | Trading: $20M-80M daily | Yearly Return: 20-40% |Risk: Low (both appreciate similarly). Range: ±15-25%. Good for BTC/ETH holders.
Total Value: $10M+ | Trading: $5M-20M daily | Yearly Return: 30-60% |Risk: Moderate-High. Compensated by 1% fees. Range: ±20-30%. For active managers.
Conservative: 70% stablecoins (USDC/USDT, DAI/USDC), 30% ETH/USDC 0.05%. Expected: 10-18% yearly return, minimal risk.
Balanced: 40% stablecoins, 40% ETH/USDC 0.3%, 20% WBTC/ETH. Expected: 20-35% yearly return, moderate risk.
Aggressive: 20% stablecoins, 50% ETH/USDC 0.3-1%, 30% altcoin pairs. Expected: 40-80% yearly return, high risk. Only for active managers who can adjust weekly and accept volatility.
Providing liquidity creates multiple taxable events: depositing assets (potentially taxable swap), collecting fees (ordinary income), withdrawing liquidity (capital gains/losses), and impermanent loss realization. Liquidity provider positions have complex tax implications that vary by jurisdiction. The IRS and other tax authorities are developing guidance.
Uniswap v3 liquidity provider taxation is extremely complex and evolving. Treatment varies by country (US, UK, EU have different rules) and depends on whether you're classified as an investor vs. trader. Some jurisdictions treat liquidity provider tokens as securities, others as commodities. Fee income may be ordinary income or capital gains. Impermanent loss losses may or may not be deductible. Consult a crypto-specialized CPA or tax attorney before providing significant liquidity. The cost of professional advice ($500-2000) is far less than potential tax penalties, audits, or missed deductions on positions earning $10K+ annually.
Consider these strategies (after consulting with a tax professional):