$11,274.54
$1,274.54
12.75%
$3.4919
$106.28
$11,274.54
$1,274.54
12.75%
$3.4919
$106.28
The Crypto APR Calculator helps investors and DeFi participants accurately project their earnings from cryptocurrency yield-bearing products. Whether you are staking tokens on a proof-of-stake network, providing liquidity in a DeFi protocol, lending assets on platforms like Aave or Compound, or depositing into a centralized exchange savings account, understanding the difference between APR and APY is essential for making informed investment decisions.
Annual Percentage Rate (APR) represents the simple interest rate over one year without accounting for compounding. In contrast, Annual Percentage Yield (APY) includes the effect of compound interest, where your earned interest itself earns additional interest. In cryptocurrency, the distinction matters enormously because many DeFi protocols auto-compound rewards daily or even per-block, creating a significant gap between the advertised APR and the actual APY you receive.
For example, an APR of 12% compounded daily yields an effective APY of approximately 12.75% -- that extra 0.75% can translate to thousands of dollars on large positions held over time. Conversely, some protocols advertise APY but pay out rewards that require manual compounding, meaning the actual return may be closer to the underlying APR unless you actively reinvest. This calculator lets you model daily, weekly, monthly, or no compounding so you can compare products fairly and choose the option that maximizes your yield.
In the volatile DeFi landscape where yield farms can advertise triple-digit APRs, this tool provides a reality check by converting those rates into actual dollar amounts over your chosen investment period. It accounts for the time value of compounding and shows you exactly how much your position will grow, day by day and month by month. Use it to compare staking protocols, evaluate liquidity pool returns, or project savings account growth on centralized exchanges.
The calculator applies the compound interest formula adapted for different compounding frequencies:
Daily Compounding: Final Balance = Principal x (1 + APR/365)^days. This is the most common in DeFi protocols where rewards are distributed every block or epoch.
Weekly Compounding: Final Balance = Principal x (1 + APR/52)^(days/7). Used by some staking pools that distribute rewards weekly.
Monthly Compounding: Final Balance = Principal x (1 + APR/12)^(days/30.4375). Common in centralized exchange savings products.
Simple Interest (No Compounding): Final Balance = Principal x (1 + APR x days/365). Used when rewards are not reinvested.
Effective APY is calculated as: APY = (1 + APR/n)^n - 1, where n is the number of compounding periods per year. This converts the stated APR into the true annualized return including compound effects.
Daily Earnings = Principal x APR/365. This gives you the day-one earnings rate, useful for estimating near-term income.
Compare the effective APY across different compounding frequencies to understand the true value of auto-compounding. An APR of 20% with daily compounding yields approximately 22.13% APY, while the same APR with monthly compounding yields about 21.94% APY. If the total interest earned meets your income goals, the product may be worth the associated risks (smart contract risk, impermanent loss, token depreciation). Always compare the APY against the volatility of the underlying token -- a 50% APY means nothing if the token drops 60% in value.
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A $10,000 deposit at 12% APR compounded daily earns approximately $1,274.74 in interest over one year, yielding an effective APY of 12.75%.
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A $50,000 deposit at 8% APR compounded monthly earns approximately $2,013 over 180 days. The effective APY is about 8.30%.
APR (Annual Percentage Rate) is the simple interest rate without compounding. APY (Annual Percentage Yield) includes the effect of compounding interest on interest. A 12% APR compounded daily produces approximately 12.75% APY. DeFi protocols often advertise APY, which is always higher than the underlying APR.
Most DeFi protocols distribute rewards per block (roughly every 12 seconds on Ethereum) or per epoch. However, claiming and reinvesting may require manual action and gas fees. Auto-compounding vaults like Yearn Finance or Beefy handle this automatically, charging a small performance fee.
Extremely high APRs (100%+) are typically unsustainable and often come from inflationary token emissions that dilute value. Sustainable yields in established protocols typically range from 2-15% APR. Always investigate the source of yield before investing.
No, this calculator assumes a stable token price and focuses purely on interest/yield calculations. In reality, if the reward token depreciates significantly, your dollar-denominated returns may be lower than projected even with high APR.
APY = (1 + APR/n)^n - 1, where n is the number of compounding periods per year. For daily compounding, n = 365. For monthly, n = 12. The more frequently interest compounds, the higher the APY relative to APR.
On Ethereum mainnet, claiming and reinvesting rewards can cost $5-50+ in gas per transaction. If you compound daily on a small position, gas fees can exceed your earnings. Use Layer 2 networks or auto-compounding vaults to minimize gas impact.
The Rule of 72 estimates how long it takes to double your investment: Years to Double = 72 / APR. At 12% APR (simple), it takes approximately 6 years. With daily compounding, it is slightly faster due to the higher effective APY.
Yes. If the underlying token loses value faster than your yield accumulates, your net position declines. This is called yield farming risk. A 20% APR in a token that drops 50% results in a significant net loss in dollar terms.
Always compare the effective APY (not APR) after accounting for compounding frequency, gas costs, and any protocol fees. Also consider the risk profile: audited protocols with established track records typically offer lower but safer yields than new unaudited farms.
Staking APR comes from network validation rewards (new token issuance). Lending APR comes from borrower interest payments. Staking rewards are often more stable but tied to inflation, while lending rates fluctuate with market demand for borrowing.
Roboculator Team
The Roboculator Team explains calculations, planning tools, and practical formulas in clear language for real-life situations.
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