APR to APY Calculator: Convert Staking Rates
Convert APR to APY, or APY back to APR, for staking and savings rates. Choose the compounding frequency, subtract a fee on rewards and project your balance.
| Compounding | APY | Value (tokens) |
|---|
Returns are in token units; the token's price can move.
How to use this calculator
- Direction: pick APR → APY if you have a simple yearly rate, or APY → APR if the quoted rate already includes compounding. Our explainer on APR vs APY in crypto staking covers the difference.
- Rate: enter the quoted rate as a percentage.
- Compounding: choose how often rewards are added to your balance and start earning. If rewards are paid out rather than restaked, pick Yearly: over one year it matches simple interest, while longer periods still assume a yearly restake.
- Fee on rewards: enter the commission a validator or platform keeps from your rewards. Use 0 if the quoted rate is already net of fees.
- Principal and years: enter the amount in tokens and how long you plan to hold it. Decimals work, so 0.5 means six months.
The table under the results shows the same net rate at every compounding frequency, so you can see how much the schedule really matters.
How it’s calculated
Net APR = APR × (1 − c) APY = (1 + Net APR ÷ n)^n − 1 Value = P × (1 + Net APR ÷ n)^(n × t) Rewards = Value − P Reverse: APR = n × ((1 + APY)^(1 ÷ n) − 1)
- APR is the annual percentage rate, a simple yearly rate, as a decimal.
- c is the fee on rewards as a decimal (10% = 0.10).
- n is the number of compounding periods per year: 365, 52, 12 or 1.
- APY is the annual percentage yield, the effective yearly rate including compounding.
- P is the principal in tokens, and t is the number of years.
A commission on rewards shrinks every reward payment by the same share, so the calculator applies it to the rate before compounding. In APY → APR mode, it first converts the quoted APY to its equivalent APR, then applies the fee and compounds again. The idea behind APY is the same as for bank deposits: it measures what a balance earns over a year once interest is paid on earlier interest, which is how compounding works for staking rewards too.
Worked example
Suppose a hypothetical staking rate of 5% APR, compounded daily, with a 10% commission on rewards, on 1,000 tokens for 3 years.
- Net APR = 5% × (1 − 0.10) = 4.5%.
- APY = (1 + 0.045 ÷ 365)^365 − 1 = 4.60% (4.6025% before rounding).
- Value = 1,000 × (1 + 0.045 ÷ 365)^(365 × 3) = 1,144.5273 tokens.
- Rewards = 1,144.5273 − 1,000 = 144.5273 tokens.
Without the fee, the same 5% APR compounds to a 5.13% APY and 1,161.8223 tokens, so the commission costs about 17.30 tokens over three years.
| Compounding | APY at 4.5% net APR | Value after 3 years (tokens) |
|---|---|---|
| Daily | 4.60% | 1,144.5273 |
| Weekly | 4.60% | 1,144.47 |
| Monthly | 4.59% | 1,144.2478 |
| Yearly | 4.50% | 1,141.1661 |
In reverse, a quoted 5% APY with daily compounding equals a 4.88% APR (4.8793% before rounding).
Tip: Before comparing two offers, put both on the same basis: APY against APY, after fees. A headline APR and a headline APY are not directly comparable.
Limitations
- Staking rates usually change over time. The calculator holds one rate constant for the whole period.
- It assumes rewards are restaked at every compounding step. Unclaimed or paid-out rewards grow more like simple interest.
- Results are in token units. The token’s price can move, so the dollar value can fall even while your token balance grows.
- Newly issued reward tokens can dilute holders, so a nominal yield is not the same as a real return. See token inflation and emissions and where staking yield comes from.
- Lockup periods, withdrawal delays and platform risk are not modeled, and tax treatment of rewards varies by country; check with a qualified professional.
Frequently asked questions
What is the difference between APR and APY?
APR is a simple yearly rate that ignores compounding. APY is the effective yearly rate once rewards are added to your balance and start earning rewards of their own. For the same underlying rate, APY is higher whenever compounding happens more than once a year. A 5% APR compounded daily works out to a 5.13% APY, while compounded once a year it stays at 5%.
How do I convert APY to APR?
Use APR = n × ((1 + APY)^(1/n) − 1), where n is the number of compounding periods per year. For a 5% APY compounded daily, APR = 365 × (1.05^(1/365) − 1) = 4.88%. Choose APY → APR in the calculator to do this automatically, and set the fee to 0 if you only want the plain conversion without any commission.
Does daily compounding make a big difference?
At typical staking rates, not much. At a 4.5% net APR, daily compounding gives a 4.60% APY, compared with 4.59% for monthly and 4.50% for yearly compounding. On 1,000 tokens over three years, the gap between daily and yearly compounding is about 3.36 tokens. The difference grows with higher rates and longer periods, so it matters more for double-digit yields.
Why is my staking balance growing slower than the advertised APY?
Common reasons include a commission taken from rewards, rewards that are not restaked automatically, a rate that has fallen since you started, and periods when your tokens were not earning, such as while they were waiting to activate or unlock. A quoted APY also assumes a full year of compounding at a constant rate. Enter your actual fee and compounding to see a more realistic figure.
Related guides
Sources
- Appendix A to Part 1030 — Annual Percentage Yield Calculation — Consumer Financial Protection Bureau
- Glossary: Compound Interest — U.S. SEC — Investor.gov
This content is for education only and is not financial, investment, tax or legal advice. Crypto assets are volatile and you can lose money. Examples use hypothetical numbers. See our disclaimer and editorial policy.