APR to APY Calculator
Crypto staking and DeFi platforms quote rates as APR or APY, and the two are not the same. APR is the simple annual rate; APY is the effective rate once rewards compound. This calculator converts an APR into the equivalent APY for a chosen compounding frequency, and shows the yield gap that compounding adds, so you can compare offers on a like-for-like basis.
APR to APY formula
APY = (1 + APR / n) ^ n - 1
where n = compounding periods per year
Compounding gain = APY - APR
APR and APY are entered and shown as percentages but used as decimals in the formula. Common values of n are 1 (annual), 12 (monthly), 52 (weekly), and 365 (daily).
Reading the result
- The effective APY is the real annual yield once rewards are reinvested.
- The compounding gain is how many percentage points APY adds over plain APR.
- Daily compounding (n = 365) is close to the continuous-compounding ceiling.
- Subtract gas or fees for each reinvestment to find the net benefit on-chain.
APR and APY: frequently asked questions
What is the difference between APR and APY?
APR (annual percentage rate) is the simple annual rate with no compounding. APY (annual percentage yield) is the effective rate after rewards are reinvested and earn further rewards. When compounding happens more than once a year, APY is always higher than APR for the same nominal rate.
How is APR converted to APY?
APY equals (1 plus APR divided by the number of compounding periods) raised to the power of the number of periods, minus 1. As the number of compounding periods grows, the APY approaches the continuously-compounded limit. This calculator lets you pick the compounding frequency that matches your protocol.
How often does crypto staking compound?
It varies. Some protocols compound rewards every block, others daily, weekly, or only when you manually claim and re-stake. Auto-compounding vaults reinvest frequently, which raises the effective APY. Choose the frequency that reflects how your rewards are actually reinvested.
Does a higher compounding frequency always help?
More frequent compounding raises the APY, but the gain shrinks as frequency increases and is offset by transaction or gas costs for each reinvestment. Auto-compounding only helps when the extra yield exceeds the cost of compounding, which matters most on chains with high gas fees.
Sources and method
- The conversion is the standard compound-interest identity relating a nominal annual rate to its effective annual yield. All inputs are user-editable; no rate is hardcoded.
- U.S. Consumer Financial Protection Bureau: consumerfinance.gov on APR and yield definitions.
Reviewed by the CalculatorHub team, edited by James Graham, 19 June 2026. See our methodology.