Staking Rewards Yield Calculator
Staking rewards accumulate based on the amount staked, the annual yield (APY), and the staking duration. This calculator uses the standard compound interest formula to estimate your rewards when compounding is applied continuously or at your chosen frequency. Enter your staked amount in USD, your expected APY, and the staking period in days to see estimated earnings and total value.
Compound interest formula for staking
A = P x (1 + r/n)^(n x t)
Reward = A - P
Where: P = principal (staked amount), r = APY as decimal, n = compounding periods per year, t = time in years
This is the standard compound interest formula as described by NIST (National Institute of Standards and Technology) in its mathematical references. Daily reward uses: Daily Rate = (1 + APY)^(1/365) - 1.
Understanding staking yields
- APY already incorporates compounding; APR does not. This calculator uses APY inputs to reflect the most common way staking yields are advertised.
- Rewards paid in tokens are subject to market price risk: a 5% APY on a token that falls 30% in price results in a net USD loss.
- Lock-up periods mean you cannot sell during the staking term; factor this liquidity risk into your decision.
- Tax on staking rewards is due when received (as ordinary income in the US), not when sold.
Staking rewards: frequently asked questions
What is crypto staking?
Staking is the process of locking up cryptocurrency in a proof-of-stake (PoS) blockchain network to participate in transaction validation. In return, stakers receive rewards, typically expressed as an annual percentage yield (APY). Popular staking assets include Ethereum (ETH), Cardano (ADA), Solana (SOL), and Polkadot (DOT).
What is the difference between APY and APR in staking?
APR (Annual Percentage Rate) is the simple annualized rate without compounding. APY (Annual Percentage Yield) accounts for compounding: if your rewards are automatically restaked (compounded), APY will be higher than APR. This calculator uses APY to reflect the compounded return if rewards are reinvested throughout the year.
Is staking income taxable?
In the United States, the IRS treats staking rewards as ordinary income at their fair market value at the time of receipt (IRS Revenue Ruling 2023-14). You may also owe capital gains tax when you sell the staked rewards. Tax treatment varies by jurisdiction; consult a tax professional.
Can I lose money staking?
Staking rewards do not protect against the underlying asset losing value. If the price of the staked token falls significantly, your staking income in USD terms may be negative even if you earn a positive APY in token terms. Some protocols also have slashing mechanisms that penalize validators for misbehavior, potentially reducing your stake.
What is a realistic staking APY?
Staking yields vary by network and market conditions. Ethereum staking has historically yielded around 3-5% APY. Solana has ranged from 5-8% APY. Higher yields from newer or smaller protocols often carry greater risk. APY rates change as more validators join the network (diluting rewards) or as token issuance rates change.
Official sources
- IRS Revenue Ruling 2023-14 (Staking as ordinary income): irs.gov/pub/irs-drop/rr-23-14.pdf.
- NIST Digital Library of Mathematical Functions (Compound interest): dlmf.nist.gov.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.