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📈DeFi Calculator

APR ↔ APY + Compounding

Convert APR and APY and estimate compounding growth over time. No wallet connection, no price feeds, no chain calls.

Equivalent APR
+12%
Nominal annual rate
Equivalent APY
+12.7475%
Effective annual yield
Value At Horizon
$1,127.47
Gain: $127.47 (+12.7475%)
Compounding Assumption
365× / year
Used for conversion + growth

Last reviewed: 2025-12-31

Quick take

  • APR is a nominal annual rate; APY is the effective annual rate after compounding.
  • APR to APY conversions depend on the compounding assumption, so match the setting to how rewards are reinvested.
  • Rates in DeFi are not fixed. Treat this as a math sanity check, not a forecast.
  • This calculator does not fetch prices, protocol data, or on-chain data.

How to use this calculator

  • Select whether the number you have is APR or APY. This converts APR to APY (or APY to APR) using your compounding assumption.
  • Pick a compounding mode that matches reality for your position (manual compounding, vault compounding, etc.).
  • Enter a principal and a time horizon in days to estimate end value and gain.
  • If you only want to compare rates, set principal to 1,000 and focus on the percent outputs.

Assumptions and limits

  • Assumes a constant rate over the full horizon; real APY/APR changes with utilization, emissions, and market conditions.
  • Assumes compounding happens at the chosen frequency without costs; gas, claim fees, and performance fees are not modeled.
  • Uses a 365-day year conversion for the horizon.
  • Does not model token price changes, impermanent loss, liquidation risk, or taxes.

FAQ

Why does APR differ from APY?

APR is a yearly rate before compounding. APY reflects how often rewards are reinvested. More frequent compounding increases APY when APR is positive.

What compounding setting should you use?

Use the setting that matches how rewards get reinvested in practice. If you claim and restake weekly, use weekly. If you use an auto-compounding vault, use a frequency that matches the vault’s behavior (or pick a conservative approximation).

Does APY guarantee returns?

No. APY is a rate expression under assumptions. Outcomes depend on variable rates, execution costs, and price.

Is this financial advice?

No. This is a calculator for understanding rate math.

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