🔒 Keep Your Crypto Safe with Ledger

Touchscreen wallet • Works with 15,000+ coins • Never lose your crypto

Cryptocurrency APY Calculator

Annual percentage yield calculator for cryptocurrency investments across different timeframes. Calculate your returns by minute, hour, day, month, and year.

Calculator
Enter your investment details to calculate potential returns
Form Progress0%

Initial investment amount

Annual percentage yield

Investment duration in days

Understanding APY

Understand key concepts to make informed investment decisions

What is APY?

APY (Annual Percentage Yield) represents the real rate of return earned on an investment over one year, accounting for compound interest. Unlike APR (Annual Percentage Rate), APY includes the effects of compounding, making it a more accurate measure of actual earnings.

APY in Crypto

In cryptocurrency, APY is commonly used in DeFi protocols, staking, lending platforms, and yield farming. Crypto APYs can range from conservative 3-5% (like Ethereum staking) to aggressive 50-100%+ (high-risk DeFi pools). Higher APY typically correlates with higher risk.

Compound Interest Power

APY assumes your earnings are continuously reinvested, creating "interest on interest." A 10% APY with continuous compounding means you don't just earn 10% - you earn slightly more as your returns themselves generate returns. This exponential growth accelerates over time.

Breaking Down Returns

This calculator breaks your APY into practical timeframes: minutely, hourly, daily, monthly, and yearly. Understanding your daily or monthly returns helps you track real-time earnings and make informed decisions about reinvestment, withdrawals, or reallocations.

APY vs APR

APY includes compound interest; APR doesn't. If a protocol offers 10% APR with daily compounding, the actual APY is ~10.52%. Always look for APY when comparing investment options - it's the true return. Many protocols advertise APR because it looks higher, but APY tells the real story.

Realistic Expectations

In traditional finance, 2-5% APY is typical. In crypto, 5-15% APY is considered moderate and sustainable. 20-50% APY is high but achievable in DeFi. Anything above 50% APY should trigger extra caution - understand the source of yield and associated risks before committing significant capital.

How to Use This Calculator

Understand key concepts to make informed investment decisions

1. Principal Amount

Enter the dollar value of your investment. This can be stablecoins ($1000 USDC), cryptocurrency equivalent ($10,000 worth of ETH), or any crypto asset you're earning yield on. Use current USD value.

2. APY Percentage

Enter the annual percentage yield offered by your protocol. Find this on the platform's dashboard, staking page, or sites like DeFiLlama.com. Make sure you're entering APY (with compounding), not APR. Examples: Ethereum staking ~4.5%, Curve pools ~8%, high-risk DeFi ~30-100%.

3. Time Period

Enter your investment duration in days. Use 365 for one year, 730 for two years, etc. Shorter periods like 30 days (1 month) or 90 days (1 quarter) work too. The calculator shows how compound interest grows your investment over your chosen timeframe.

Understanding Results

You'll see your returns broken down by timeframe: minutely (smallest unit), hourly, daily (most practical), monthly (great for budgeting), and yearly (total annual earnings). Plus total value after your time period and total return earned.

Practical Use Cases

Use daily returns to track if you're actually receiving expected yields. Use monthly returns for income planning. Use yearly returns to compare with other investment options. Use total return to evaluate if the opportunity meets your financial goals.

Compound Assumptions

This calculator assumes continuous compounding (most accurate for crypto). Real results may vary slightly based on protocol-specific compounding frequencies. Auto-compounding protocols will match these results closely. Manual claiming requires you to reinvest rewards to achieve stated APY.

Quick Example:

Invest $10,000 at 12% APY for 1 year:

• Yearly: $1,200
• Monthly: ~$95
• Daily: ~$3.13
• Hourly: ~$0.13
• Total Value: $11,200

How APY Calculations Work

Understand key concepts to make informed investment decisions

Mathematical Formulas

1. Rate Per Period

rate = (1 + APY/100)^(1/periods) - 1

Periods per year:
• Minutes: 525,600
• Hours: 8,760
• Days: 365
• Months: 12

2. Return Per Period

return = principal × rate

Example (10% APY, $10,000):
Daily rate = (1.10)^(1/365) - 1 = 0.000261
Daily return = $10,000 × 0.000261 = $2.61

3. Yearly Return

yearly = principal × (APY / 100)

Example: $10,000 × 0.10 = $1,000/year

Total Value Calculation

4. Compound Growth

value = principal × (1 + APY/100)^years

This accounts for compound interest over your time period. For 2 years at 10% APY:
$10,000 × (1.10)^2 = $12,100

5. Total Return

return = final value - principal

Example: $12,100 - $10,000 = $2,100 profit

6. Verification

Verify calculations: Daily return × 365 should approximately equal yearly return (small differences due to compounding). Monthly return × 12 ≈ yearly return. This ensures accuracy across all timeframes.

📊 Why Break Down APY?

Understanding your returns across different timeframes helps you make better decisions. Daily returns let you verify protocols are paying correctly. Monthly returns help with budgeting and income planning. Yearly returns facilitate comparison with traditional investments. Seeing minutely/hourly returns demonstrates the power of continuous compounding - your money literally grows every second!

APY Comparison Across Timeframes

Understand key concepts to make informed investment decisions

Example: $10,000 at Different APYs (1 Year)

Compare how different APY rates translate to practical daily and monthly earnings:

5% APY (Conservative)

Daily: $1.37 | Monthly: ~$41 | Yearly: $500

Typical of Ethereum staking, safe and stable

10% APY (Moderate)

Daily: $2.74 | Monthly: ~$83 | Yearly: $1,000

Common in DeFi lending platforms

20% APY (High)

Daily: $5.48 | Monthly: ~$167 | Yearly: $2,000

High-yield DeFi pools, increased risk

35% APY (Very High)

Daily: $9.59 | Monthly: ~$292 | Yearly: $3,500

Aggressive DeFi strategies, significant risk

50% APY (Extreme)

Daily: $13.70 | Monthly: ~$417 | Yearly: $5,000

Extremely high risk, verify sustainability

100% APY (Exceptional)

Daily: $27.40 | Monthly: ~$833 | Yearly: $10,000

Extreme risk, often unsustainable

💡 Key Insight:

Breaking down APY by timeframe makes abstract percentages concrete. Earning "$2.74/day" is more tangible than "10% APY." It helps you verify protocols are paying correctly and makes it easier to compare opportunities. A $50/month yield might cover a subscription; $500/month could be meaningful passive income. Use these breakdowns to evaluate whether an investment meets your financial goals.

Maximizing APY Returns

Understand key concepts to make informed investment decisions

Auto-Compound Your Returns

The APY rate assumes continuous compounding. Use protocols that auto-compound (Yearn, Beefy, Convex) or manually reinvest rewards regularly. Compounding daily vs. monthly can add 0.5-1% extra APY annually.

Compare Real APY, Not APR

Always compare protocols using APY (includes compounding), not APR. A protocol advertising 15% APR with daily compounding actually offers ~16.18% APY. Unscrupulous platforms may advertise higher APR to hide lower actual returns.

Monitor Rate Changes

APY rates fluctuate based on protocol usage, TVL, and market conditions. A pool offering 25% APY today might drop to 15% tomorrow. Check rates weekly and be ready to reallocate to maintain optimal returns.

Balance Risk and Reward

50% APY sounds amazing but often carries 10x the risk of 10% APY. Consider splitting capital: 50% in conservative 5-10% APY options (stable, audited protocols) and 50% in higher-yield 15-30% APY opportunities.

Use Stablecoins for Predictability

Earning 10% APY on USDC means you actually get 10% more purchasing power. Earning 20% APY on a volatile token that drops 30% results in net loss. For reliable income, focus APY strategies on stablecoins.

Consider Lock-Up Periods

Higher APY often requires locking funds for weeks or months. If you need liquidity, choose flexible options even if APY is 2-3% lower. Being locked during a market crash or better opportunity costs more than the extra yield.

🚀 Strategic Approach:

Beginner: Start with 5-10% APY on stablecoins via reputable platforms (Coinbase, Aave, Compound). Learn the basics with minimal risk.

Intermediate: Allocate 60% to stable 5-10% APY, 30% to moderate 10-20% APY, 10% to experimental 20-40% APY. This balances safety and growth.

Advanced: Actively manage positions, chase optimal APY across protocols, use leveraged strategies, but always maintain 30-40% in conservative positions as a safety net.

Risks & Considerations

Understand key concepts to make informed investment decisions

⚠️ APY Is Not Guaranteed

Advertised APY is a snapshot, not a promise. Rates can drop significantly without warning as protocol conditions change. A 30% APY pool today might be 15% next week. Never assume current rates will persist.

⚠️ Smart Contract Risk

All DeFi protocols use smart contracts that could have bugs or exploits. Even audited contracts have been hacked. Only use established, audited protocols with proven track records. Diversify across multiple platforms.

⚠️ Impermanent Loss

If earning APY through liquidity pools, you face impermanent loss risk. High APY might be offset by IL if token prices diverge. Understand the mechanism before providing liquidity to earn yield.

⚠️ Token Price Volatility

Earning 50% APY is worthless if the token price drops 60%. Your net result is negative despite high APY. For volatile tokens, consider whether APY adequately compensates for price risk. Stablecoins eliminate this concern.

⚠️ Inflation-Based Yields

Some high APYs come from token inflation, not real value creation. If a protocol prints 100% more tokens annually to pay 100% APY, your relative share hasn't grown - you've just kept pace with inflation.

⚠️ Rugpull Scams

Extremely high APY (100-1000%+) is often used to lure victims into scam protocols that steal funds. If APY seems too good to be true, it probably is. Research team, audits, and protocol mechanics thoroughly.

⚠️ Tax Implications

APY earnings are typically taxable as income when received (not just when withdrawn). High APY means high tax liability. Consult a crypto tax specialist to ensure compliance and optimize your tax strategy.

⚠️ Liquidity Risk

Some high-APY protocols require locking funds or have limited liquidity for withdrawals. You might be unable to exit during market stress when you most want to. Always understand withdrawal terms and restrictions.

Where to Find APY Opportunities

Understand key concepts to make informed investment decisions

Conservative Options (5-10% APY)

Ethereum Staking (Lido, Rocket Pool)

APY: 3-5% | Risk: Low | Liquidity: Liquid (stETH, rETH)
Safest crypto yield. Auto-compounds, fully liquid, blue-chip protocols.

Aave / Compound (Stablecoin Lending)

APY: 2-8% | Risk: Low-Moderate | Liquidity: Instant
Lend USDC/DAI/USDT. Established platforms, continuous compounding, fully liquid.

Cardano / Polkadot Staking

APY: 4-15% | Risk: Moderate | Liquidity: Variable
Native staking on proof-of-stake chains. Cardano fully liquid, Polkadot 28-day unbonding.

High Yield Options (10-30%+ APY)

Curve Finance (Stablecoin Pools)

APY: 5-20% | Risk: Moderate | Liquidity: Instant
Stablecoin liquidity pools. Moderate IL risk, boosted by CRV rewards.

Yearn Finance / Beefy (Vaults)

APY: 10-30% | Risk: Moderate-High | Liquidity: Variable
Auto-compounding vaults. Optimized strategies, moderate smart contract risk.

Anchor / Venus (Algorithmic Stablecoins)

APY: 5-20% | Risk: High | Liquidity: Variable
Algorithmic stablecoin platforms. Higher APY but depegging risk.

✅ Platform Selection Criteria:

  • Security: Multiple audits, 2+ years track record, significant TVL ($100M+)
  • Transparency: Open-source contracts, active community, responsive team
  • Sustainable APY: Understand yield source - real fees vs. token emissions
  • Liquidity: Ensure you can withdraw when needed, check for lock-up periods
  • Reputation: Research on DeFi forums, Twitter, Discord before committing

⚠️ Red Flags to Avoid:

  • • APY above 100% without clear, sustainable yield source
  • • Anonymous teams or new protocols with no audit history
  • • Protocols requiring you to lock funds for extended periods with no escape hatch
  • • Platforms with declining TVL or user complaints about withdrawal issues

Tax Considerations

Understand key concepts to make informed investment decisions

Important Tax Information:

APY returns from cryptocurrency are typically taxable as ordinary income when received, not when withdrawn. Each time you earn rewards (daily, weekly, or when claimed), that creates a taxable event. The tax treatment varies significantly by jurisdiction, and crypto tax laws are actively evolving.

Track Everything

  • • Record date and USD value of every yield payment received
  • • Track both auto-compounded and manually claimed rewards
  • • Use crypto tax software: CoinTracker, Koinly, TokenTax, CoinLedger
  • • Save transaction records, wallet addresses, and yield statements

Taxable Events

  • • Receiving APY rewards: ordinary income at fair market value
  • • Selling earned rewards: capital gains/losses from receipt date
  • • Auto-compounding: may be taxable even if not withdrawn
  • • Swapping rewards to other tokens: additional taxable event

Professional Guidance Required

Cryptocurrency APY taxation is extremely complex and varies by country, state/province, and individual circumstances. Tax authorities worldwide are actively developing guidance, and rules change frequently. Consult with a crypto-specialized tax professional or CPA to ensure compliance, optimize your tax strategy, and avoid penalties. The cost of professional advice is typically far less than potential tax liabilities, interest, or fines from non-compliance.

⚠️ Common Tax Mistakes:

  • • Not reporting small amounts of yield (even $100 is reportable)
  • • Assuming auto-compounded rewards aren't taxable until withdrawn
  • • Failing to track cost basis for earned rewards when later sold
  • • Not setting aside money for taxes (consider 25-40% of earnings)
  • • Using centralized exchanges without realizing they report to tax authorities