What the numbers mean
Token split. A CLMM position is not 50/50. The proportion follows from where the current price sits inside your range: the closer price is to the lower bound, the more of the base token you hold. Deposit the wrong proportion and the pool takes only what it can pair, leaving the rest of your money idle.
Concentration. A full-range position spreads liquidity from zero to infinity. A ±5% range packs the same dollars into a sliver, so each dollar supplies far more liquidity at the current tick — and earns a proportionally larger share of the fees flowing through it.
The ratio is the honest part. Comparing two ranges is exact arithmetic with no assumptions. Turning it into an APR is not: it assumes price stays inside your range and that the pool's published APR corresponds to the reference width you chose. Treat the percentage as an upper bound on a good day, not a forecast.
The formula
L = V / (2√P − P/√Pb − √Pa)
base = L × (1/√P − 1/√Pb)
quote = L × (√P − √Pa)
concentration vs full range = 2√P / (2√P − P/√Pb − √Pa)Where P is the current price, Pa and Pb the range bounds and V the deposit value. This is the same math Uniswap v3, Orca Whirlpool and Raydium CLMM all use — the calculator above runs it directly in your browser, nothing is sent anywhere.
The trade-off nobody puts on the landing page
Narrow wins on rate and loses on time. A ±5% range on SOL is roughly 4× the fee rate of a ±20% one — and SOL leaves a ±5% band often. Out of range you earn nothing at all while still holding the exposure.
How to use this sensibly
- Pick the width from the pair's volatility, not from the APR you would like to see.
- Compare two candidate ranges by their ratio — that part needs no assumptions.
- Remember rebalancing cost: each rebuild is a transaction plus the spread you cross.
- Read the APR output as "while in range", and ask how much of the week that will be.
Frequently Asked Questions
How is liquidity pool APR calculated?
A pool's APR is the trading fees it paid to liquidity providers over a period, divided by its TVL and annualised — for example, 24-hour fees × 365 ÷ TVL. That is an average over all the liquidity in the pool, including ranges far from the price. Your position's APR is that rate multiplied by how concentrated your range is compared with the reference range you enter above — the step this calculator does — and it holds only while price stays inside your range.
How is concentrated liquidity APR calculated?
Your position earns in proportion to the liquidity it supplies at the price where trades happen. For a range [Pa, Pb] at price P, liquidity per dollar is 1 / (2*sqrt(P) - P/sqrt(Pb) - sqrt(Pa)). Dividing that by the same figure for a full-range position gives the concentration multiplier — how many times harder each dollar works. Multiply the pool's fee rate by that ratio and you have the position's rate, valid only while price stays inside the range.
Why is my LP position not 50/50?
Because the split follows the position of the current price inside your range. If price sits exactly at the geometric middle you are close to even; nearer the lower bound you hold more of the base token, nearer the upper bound more of the quote. The calculator above shows the exact amounts, which is what you need before depositing — an unbalanced deposit leaves part of your money unused.
Is a narrow range always better?
No. Narrow multiplies the fee rate and divides the time you spend earning it. A +/-5% band on SOL earns roughly four times a +/-20% band per dollar, and leaves range far more often; outside the range you earn nothing while still holding the exposure. The right width comes from the pair's volatility and from how quickly you (or a bot) can rebuild the position.
Does this calculator account for impermanent loss?
No — it calculates fee side only: the token split, the concentration and the resulting rate. Impermanent loss depends on how far price actually travels, which no calculator can know in advance. We cover it separately, with worked examples and a hedging backtest on SOL price history, in the article on impermanent loss.
Let the bot handle it
Smart LP Bot manages concentrated liquidity positions on Orca and Raydium at the same time — rebalancing, fee collection and optional IL hedging, all from Telegram.
Open in TelegramHome · Orca Whirlpool Bot · Raydium CLMM Bot · LP APR Calculator · Delta-Neutral LP · CLMM rebalance bot · Passive Income · Blog
Figures are illustrative calculations, not investment advice; liquidity positions can lose value.