How are LP token values calculated?

LP token value = (Pool Total Value / Total LP Tokens) × Your LP Tokens. As fees accrue, the underlying pool value grows, increasing LP token value. IL reduces value relative to holding the assets directly.

How are trading fees distributed to LPs?

Most AMMs (Uniswap V2: 0.3%, V3: 0.05-1%) credit fees directly to the pool, increasing the pool reserves per LP token. In concentrated liquidity (V3), only active liquidity within the current price range earns fees.

Liquidity Pool Share & Position Calculator

Calculate your share of a liquidity pool, estimated trading fee earnings, and daily/weekly fee income. Compute pool share percentage, reserves added, LP token received, and current position value including accrued fees and IL.

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How to Use

Enter the values for the scenario you are assessing. Calculate your share of a liquidity pool, estimated trading fee earnings, and daily/weekly fee income. Compute pool share percentage, reserves added, LP token received, and current position value including accrued fees and IL. Use the lp share calculator result to inform your calculation.

Liquidity Pool Share & Position Calculator

How to Use

Frequently Asked Questions

How are LP token values calculated?

How are trading fees distributed to LPs?