Yield Farming APY Calculator

APR is the nominal annual rate before compounding is applied — the headline number the farm or pool advertises. Effective APY is the actual annual return you'd realize once compounding is factored in, computed as (1 + APR/n)^n - 1, where n is how many times per year rewards compound based on the frequency you select. APY is always equal to or higher than APR whenever there's any compounding at all.

More, not less. At realistic, moderate APRs, switching from yearly to daily compounding raises the resulting APY by a modest amount — around 5% more APY at a 10% APR — because compounding more often only lets a modest amount of interest earn interest sooner. At the extremely high APRs some DeFi pools advertise, the (1 + APR/n)^n formula raises an already-huge base to a power set by the compounding frequency, so the gap between daily and yearly compounding widens dramatically: about 72% more APY at this calculator's 100% APR default, and potentially dozens of orders of magnitude apart at the 10,000% APR extreme of the declared range. Compounding Frequency becomes the single most consequential input, not the least, once APR gets large.

No — they're a mathematically accurate illustration of how compound interest scales, not a realistic return expectation. Extremely high advertised APRs in DeFi typically come from newly launched or thinly liquid pools and are rarely sustained for a full year; the astronomical Effective APY and Projected Earnings figures this calculator shows at those inputs demonstrate what the formula produces, not what an investor should actually expect to receive.

No. Effective APY depends only on APR and Compounding Frequency — Investment Amount has no effect on the percentage figure at all. Investment Amount only comes into play afterward, when it's multiplied by the already-determined APY (and the farm duration fraction) to produce Daily Yield, Projected Earnings, and Total Value in dollar terms.

No. Effective APY is always expressed as an annualized rate and doesn't change based on how long you plan to stay in the farm. Farm Duration only affects Projected Earnings and Total Value, by scaling the annual APY down to the fraction of a year (Farm Duration in days divided by 365) that you're actually invested.