Compounding Staking APY Calculator
A staking program quotes an APR, but if you reinvest rewards they earn further rewards, raising your effective yield to the APY. This calculator converts a staking APR to an APY for any compounding frequency, then projects your final balance and tokens earned over a chosen number of years. Enter the network's current APR, your staked amount, how often you compound, and the time horizon. The APR is a user input because it is network-specific and floats with total stake.
APR to APY formula
Periodic rate = APR / 100 / n
APY % = ((1 + periodic rate) ^ n - 1) * 100
Final balance = principal * (1 + periodic rate) ^ (n * years)
Tokens earned = final balance - principal
APY gain over APR = APY - APR
Here n is compounds per year. APY is always at least APR and rises with compounding frequency. The final balance applies the periodic rate across all compounding periods in the horizon.
Things to know
- The staking APR is network-specific and floats with total stake; take the current figure from the network.
- Higher compounding frequency raises APY, with diminishing gains toward continuous compounding.
- Manual restaking can incur gas that offsets the compounding benefit for small balances.
- Auto-compounding protocols reinvest without per-action gas, capturing more of the APY.
- Rewards are generally taxable as ordinary income on receipt under IRS digital asset rules.
Staking APY: frequently asked questions
What is the difference between APR and APY?
APR is the simple annual rate with no compounding. APY is the effective annual rate once rewards are reinvested and earn further rewards. APY is always at least APR and grows as the compounding frequency rises. The standard conversion is APY equals (1 plus APR divided by n) to the power n, minus 1, where n is compounds per year.
How does compounding frequency change my yield?
More frequent compounding earns slightly more because rewards start earning sooner. Daily compounding beats monthly, which beats annual, for the same APR. The gain shrinks at higher frequencies and approaches a limit (continuous compounding). This calculator lets you set compounds per year to see the effect.
Where does the APR come from?
The staking APR is set by the network and floats with total stake and issuance. Take the current figure from the network's explorer or documentation and enter it. This tool does not assume an APR because it is network-specific and changes continuously.
Do gas or restaking fees reduce my APY?
Yes. Each manual restake can incur a transaction fee that eats into the compounding benefit, especially for small balances. Some protocols auto-compound at no per-action gas cost. This calculator models gross compounding; subtract restaking costs separately if you compound manually.
Is staking yield taxable?
In the United States the IRS treats staking rewards as ordinary income at fair market value when you gain control, with a later capital gain or loss on disposal. Compounding does not defer that income. This tool does not compute tax; consult IRS digital asset guidance and a professional.
Official sources
- U.S. Securities and Exchange Commission: Investor.gov on compound interest and APY.
- U.S. Internal Revenue Service: Digital Assets.
Reviewed by the CalculatorHub team, edited by James Graham, 17 June 2026. See our methodology.