# Chapter 6 - How to calculate IL in CLAMM (Concentrated Liquidity Automated Market Maker)

To calculate Impermanent Loss (IL) in a Concentrated Liquidity Automated Market Maker (CLAMM) is quite difficult.\
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This section will be focused on how to calculate IL for specific position using existing tools. It is not meant to be an explainer on the math behind Uniswap V3. If you are interested in learning more about the math, I would direct you to the following resources:

1. [Uniswap V3 Whitepaper](https://app.uniswap.org/whitepaper-v3.pdf)
2. [UniV3 Math Explainer by Barry Fried](https://x.com/BarryFried1/status/1565370856695599106?s=20\&t=Yia7_fGiuUVAq2piH4gVQw)

## Spreadsheet to calculate IL

Here is the [spreadsheet to calculate IL](https://docs.google.com/spreadsheets/d/1f3_gPYX3Pjh0GfwOFmPoPzzfE6pShdSEHxP9NmLUoYw/edit?gid=0#gid=0) (credit to [Stephen](https://x.com/phtevenstrong) from [DeFi Dojo](https://defidojo.vip/)) for volatile/stable pairs (ex. WETH/USDC, WBTC/USDT, etc).\
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Let's walk through how to use the spreadsheet with an example.\
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Say Chad has about $1000 in both ETH and USDC. He enters a position with initial price of $1000 for ETH, a range with ETH lower tick price of $500 and upper tick of $1500 (+-50%) and initial amount of .35 ETH + 558 USDC.\
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[ETH price pumps](https://www.youtube.com/watch?v=qG31nRYPJvc) to $1250. What is Chad's IL? It will be -2.67% (compared to full range IL of .62% that is 4.3x).\
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Here is how to figure this out using the spreadsheet.&#x20;

<figure><img src="/files/B6GCPddYb6fjpwPbCJmc" alt=""><figcaption></figcaption></figure>

You will need to input the initial price of ETH (1000), the ETH initial amount (Chad has 1k deposit so .35 ETH = \~1k Initial Asset Amounts in LP), the ETH upper price tick (1500), the ETH lower price tick (500) and the future price of ETH (1250) into the Blue Input fields.\
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We can see that in the green output boxes we get an Impermanent Loss of -2.67%. We also get the future amount in ETH and future amount in stables. Since ETH increased in price, Chad became a forced seller of ETH. His LP amount in ETH went from 0.35 to 0.149.&#x20;


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