Crypto APY / APR Calculator
APY / APR FAQ
What is APR?
APR (Annual Percentage Rate) is the simple interest rate earned in one year without compounding.
What is APY?
APY (Annual Percentage Yield) takes into account the effect of compounding, giving a more accurate reflection of real returns.
Why is APY higher than APR?
APY grows faster because your rewards are reinvested and start earning additional interest — unlike APR which is flat.
Which is better, APR or APY?
APY usually provides higher returns because of compounding, but the actual benefit depends on how often compounding occurs.
Where do I see APY in crypto?
APY is widely displayed on DeFi platforms, staking pools, and yield farming protocols.
Is APY guaranteed?
No. Crypto returns depend on platform conditions, token volatility, and risks. Always research before investing.
What is APY and APR in Crypto?
Annual Percentage Rate (APR) and Annual Percentage Yield (APY) are two common terms in crypto investing, especially in DeFi, staking, and yield farming. While they may seem similar, there are key differences that affect how much profit you actually make.
APR refers to the simple annual interest rate you earn on your crypto holdings. For example, if you invest $1,000 at an APR of 10%, you will earn $100 after one year — no compounding considered.
APY, on the other hand, accounts for the effect of compounding. If you reinvest your rewards periodically, the growth accelerates over time. A 10% APR can translate into an APY of over 10.5% if compounded monthly.
This calculator allows you to input your initial investment, interest rate, time period, and compounding frequency to see how much your investment will be worth in the future. It helps you compare APR vs APY scenarios so you can make informed decisions in your staking or yield farming strategies.
In the fast-moving world of crypto, where DeFi platforms compete to offer high returns, understanding the difference between APR and APY is crucial. Choosing protocols with frequent compounding can make a big difference in your long-term returns.
Always remember that high APR or APY rates often come with risks. Before investing, consider the platform's security, token volatility, and your own risk tolerance.