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APY from APR (Crypto) Calculator

What APY does my APR actually pay?

How it is calculated

The tool converts a quoted APR into the yield you earn after compounding. APY = (1 + APR ÷ n)^n − 1, where APR is the quoted rate as a percentage (12 means 12 %) and n is the number of compounding periods per year, such as 365 for daily or 12 for monthly. The rate credited each period is APR ÷ n, and the dollar gain over one year is principal × APY. The frequency is rounded to a whole number and must be between 1 and 100,000. APR and principal cannot be negative. A frequency of 1 means no compounding, so APY equals APR. The result assumes the rate stays fixed for the full year and rewards are reinvested at every period. The principal is a dollar amount, and token price moves and fees are not included.

Worked example

You stake $1,000 at a 12 % APR that compounds daily, so n = 365. Rate per period: 12 ÷ 365 = 0.0329 %. Growth factor: (1 + 0.12 ÷ 365)^365 = 1.1275. APY: 1.1275 − 1 = 12.75%. Dollar gain: 1,000 × 0.1275 = $127.47, so after one year the balance is $1,127.47. Compounding monthly instead (n = 12) would give an APY of 12.68 %, a little lower, and with n = 1 the APY is just 12.00 %.

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Common mistakes

  • Typing the APR as a decimal. A 12 % rate is entered as 12, not 0.12; 0.12 would be treated as 0.12 % APR.
  • Comparing a platform's APR with another's APY. They are not the same measure; convert both to APY at the same compounding frequency before choosing.
  • Entering the wrong compounding frequency. Daily is 365, weekly is 52, monthly is 12; typing 1 gives APY equal to APR.
  • Assuming rewards auto-compound when they do not. If you must claim and restake by hand, you compound less often than the platform's headline frequency, so your real yield is lower than shown.
  • Reading the gain as profit in dollars when the reward is paid in a token. The tool assumes a fixed dollar value; if the token price falls, the real result differs.

Sources

About this calculator

APR (annual percentage rate) is the simple, non-compounded annual interest rate a crypto staking or lending platform quotes, while APY (annual percentage yield) accounts for compounding — reinvesting each period’s rewards so future rewards earn rewards on top of rewards. The more frequently interest compounds (daily versus weekly versus continuously), the further APY pulls ahead of the quoted APR, since more compounding periods mean more chances for rewards to compound on themselves.

Crypto stakers and yield-farmers use this conversion because platforms are inconsistent about which figure they advertise, and a headline APR looks smaller than the APY an investor will actually realize if rewards are auto-compounded — comparing two platforms fairly requires converting both to the same basis (APY at the same compounding frequency) rather than comparing a quoted APR against a quoted APY.

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