Calculate yield farming APY from daily reward emissions and TVL. Enter reward token price, daily emissions, and total value locked to find the true farming yield.
Yield farming APY is determined by three variables: the daily reward emissions, the reward token's price, and the total value locked (TVL) in the pool. When protocols launch new incentive programs, APYs can be astronomical — but they decay rapidly as TVL increases and reward token prices fall.
This Yield Farming APY Calculator computes the annualized yield from farming rewards. Enter the daily token emissions, reward token price, and pool TVL to see the farming APY. You can also input your deposit to estimate dollar earnings.
Understanding how farming APY is calculated helps you act quickly on new opportunities and recognize when yields are becoming unsustainable. The tool also shows how APY changes if TVL doubles or reward prices fall.
Crypto traders, long-term holders, and DeFi participants benefit from transparent crypto yield farming apy calculations when planning entries, exits, or portfolio rebalances. Revisit this calculator whenever market conditions shift to keep your strategy grounded in accurate data.
Farming APYs displayed on protocol dashboards can be stale or misleading. This calculator lets you verify the APY using real emission data, understand its sensitivity to TVL and token price, and project your actual earnings. Real-time recalculation lets you model different market scenarios quickly, so you can act with confidence rather than relying on rough mental estimates.
Farming APY = (Rewards Per Day × Token Price × 365) / TVL × 100. Your daily earnings = (Your Deposit / TVL) × Daily Rewards × Token Price.
Result: 146% APY
Daily reward value = 10,000 × $2 = $20,000. Annual = $7,300,000. APY = $7,300,000 / $5,000,000 × 100 = 146%. Your $50,000 deposit (1% of TVL) earns $200/day or ~$73,000/year at these rates.
Most farms follow a predictable arc: (1) Launch with low TVL and extreme APY. (2) Farmers rush in, TVL spikes, APY plummets. (3) Reward token faces sell pressure from farmers. (4) Lower token price further reduces APY. (5) Farmers exit, TVL drops, stabilizing at a sustainable yield.
Sustainable yields come from real economic activity — trading fees, lending interest, protocol revenue. Unsustainable yields come purely from token emissions that dilute the reward token. Long-term farming strategies should focus on protocols with genuine revenue streams.
Your real return accounts for: farming APY minus impermanent loss, minus gas costs, minus reward token price decline. A 100% farming APY can easily become 20% real return after these deductions. This calculator handles the APY math; pair it with our IL calculator for the full picture.
When a farm launches, TVL is low but emissions are fixed, creating very high APY. As farmers deposit capital chasing the yield, TVL increases and the same emissions are spread across more dollars, reducing APY.
It's real at that moment but almost certainly temporary. Such APYs usually last hours to days. They assume the reward token price stays constant, which it rarely does under heavy selling pressure from farmers.
If you believe the reward token will appreciate, hold it. If you're farming purely for yield, selling rewards regularly locks in profits and reduces exposure to reward token price drops.
Your share of rewards = Your Deposit / TVL. When TVL doubles, your daily earnings halve. This is why early farmers earn disproportionately more — they capture a larger share of fixed emissions.
In most jurisdictions, yes. Farming rewards are typically taxed as income at the fair market value when received. Capital gains tax applies when you sell the reward tokens. Keep records of all farming activity.
Farming APR is the simple annualized rate. Farming APY includes the effect of compounding. If you auto-compound farming rewards back into the pool, APY is the more accurate metric.