Convert APR to APY for crypto staking and DeFi yields. Enter the nominal APR and compounding frequency to calculate the effective annual percentage yield.
Annual Percentage Rate (APR) and Annual Percentage Yield (APY) are two of the most important metrics in crypto finance, yet they're frequently confused. APR represents the simple interest rate without compounding, while APY accounts for the effect of compounding over a year. The difference can be dramatic — a 100% APR compounded daily yields an APY of roughly 171.5%.
In decentralized finance, protocols advertise both metrics interchangeably, making it essential to convert between them accurately. Yield farms, staking platforms, and lending protocols each compound at different frequencies — some every block, some daily, some weekly. Understanding the true APY lets you compare opportunities on equal footing.
Our Crypto APY from APR Calculator takes your nominal APR and compounding frequency and returns the effective APY instantly. Whether you're evaluating a new staking pool, comparing DeFi vaults, or simply verifying a protocol's claims, this tool gives you the real number.
Crypto traders, long-term holders, and DeFi participants benefit from transparent crypto apy from apr calculations when planning entries, exits, or portfolio rebalances. Revisit this calculator whenever market conditions shift to keep your strategy grounded in accurate data.
Protocols often display APR to make yields look lower (or APY to make them look higher). Converting APR to APY reveals the true return you'll earn after compounding. This is crucial when comparing staking options, DeFi vaults, and lending platforms that compound at different intervals. Real-time recalculation lets you model different market scenarios quickly, so you can act with confidence rather than relying on rough mental estimates.
APY = (1 + APR / n)^n − 1, where APR is the annual percentage rate as a decimal, and n is the number of compounding periods per year.
Result: 64.82% APY
A 50% APR compounded daily means each day you earn 0.1370% (50/365). Reinvesting daily for a year gives (1 + 0.50/365)^365 − 1 ≈ 0.6482, or 64.82% APY. The compounding adds nearly 15 percentage points above the simple rate.
Compounding is the engine behind exponential growth in DeFi. When your rewards are reinvested, they begin earning their own rewards. Over time, this creates a snowball effect where returns accelerate. The frequency of compounding directly impacts how quickly this snowball grows.
Most auto-compounding vaults restake daily or even per-block. Manual staking typically compounds whenever you claim and restake — weekly or monthly for many users. Lending protocols like Aave accrue interest per block, effectively giving continuous compounding.
For a $10,000 position at 50% APR, the difference between no compounding ($5,000 earned) and daily compounding ($6,482 earned) is nearly $1,500 over a year. As principal grows, the absolute dollar gap widens, making APY the more honest measure of expected return.
APR is the simple annual interest rate without compounding. APY includes the effect of compounding — earning interest on your interest. APY is always equal to or higher than APR for the same nominal rate.
Some protocols display APR because it's easier to calculate and doesn't assume a compounding frequency. Others show APY to make yields look more attractive. Always check which metric is being shown before investing.
It varies widely. Auto-compounding vaults may compound daily or even per-block. Manual staking requires you to claim and restake rewards yourself, effectively compounding at whatever frequency you choose.
Yes, mathematically more frequent compounding produces a higher APY for the same APR. However, the marginal benefit decreases — going from annual to daily compounding matters a lot, but daily to per-block barely changes the result.
No. For a positive APR with at least one compounding period, APY will always be equal to (annual compounding) or greater than (more frequent compounding) the APR.
Subtract the total annual gas cost from your expected earnings before calculating effective APY. If manual compounding costs $5 per transaction and you compound daily, that's $1,825/year in fees — which can destroy returns on smaller positions.