Crypto APR/APY Calculator

To use our calculator simply input the exact amount in APR or APY that the DeFi yield farming platform you are using has presented to you, as well as the compounding time period. Then hit the “Calculate” button to have the conversion processed.

To calculate APR in the crypto context, you simply divide the total interest paid or received over a year by the initial amount of the loan or investment. For example, if you loan 1 ETH at an interest rate of 5%, your APR would be 5% and you will have totaled .05 ETH at the end of a year.

On the other hand, calculating APY in crypto involves a little more complexity as it involves compound interest. The formula is (1+r/n)n – 1, where ‘r’ is the nominal interest rate and ‘n’ is the number of times interest is compounded.

APY, or Annual Percentage Yield, refers to the total return on a savings deposit or investment over a year, accounting for compounding interest. This means earning interest on both the initial investment and the interest accrued over time, which accelerates wealth growth. In cryptocurrency, APY is crucial in liquidity mining and staking, where investors contribute assets to earn rewards. Overall, APY serves as a key metric for investors evaluating the profitability of DeFi strategies in crypto.

APR, or Annual Percentage Rate, is a measure of the yearly cost of funds for loans or the annual rate of return on investments. Unlike APY, APR does not consider compound interest, providing a straightforward view of interest costs or earnings. In the crypto space, APR is significant in DeFi lending platforms where users can lend crypto and earn interest through smart contracts, typically expressed as APR. This metric helps investors assess and compare profitability across different lending opportunities in decentralized finance.

The confusion between APR and APY arises because both are used to express potential return on investment. The key difference comes down to how they account for interest. While APR gives you a basic, non-compounded annual rate, APY gives a more accurate picture of returns by including compound interest. Therefore, when comparing “APY vs APR in crypto,” you’ll generally find that APY will be higher than APR for the same nominal interest rate due to the compounding effect.

If you’re looking to maximize your returns in the decentralized finance (DeFi) landscape, De.Fi’s Explore Yields tool is an essential asset. This powerful tool helps you navigate the complex world of crypto APR and APY, allowing you to find the best yields in crypto with a few simple clicks.

At its core, the Explore Yields tool offers a comprehensive view of available yields across numerous platforms and protocols. But what makes it truly powerful is its robust filtering capabilities. You can filter results by chain, allowing you to focus on opportunities within specific blockchain ecosystems like Ethereum, Arbitrum, or Base. You can also filter by the type of farm, whether it’s lending, staking, or stablecoins, and even by total value locked and minimum yield.

For those who are looking for opportunities with specific tokens, the search functionality comes in handy. Just enter the token of your interest, and the tool will display all the available opportunities with that token. The Borrow/Lending tab is another unique feature, providing a consolidated view of lending and borrowing rates across different platforms.

The “My Opportunities” tab is a standout feature available when you use De.Fi as your DeFi portfolio tracker. It scans your portfolio and identifies yield opportunities based on your current holdings. This means it takes the guesswork out of searching and brings the opportunities directly to you, based on your unique portfolio.

Using De.Fi’s Explore Yields tool not only saves time and effort but also equips you with valuable insights to make informed decisions. It brings clarity to the intricate world of crypto APR and APY, empowering you to optimize your yields and gain a competitive edge in the rapidly evolving DeFi space.

If you are looking to find the best yield farm opportunities, we recommend sorting our Explore yields tool by APR. New protocols are usually the best place to find high-yield farming APYs as they are looking to attract liquidity to boost their TVL. However, please note that we recommend doing your own research on ALL yield farms that you interact with. The newer the protocol, the higher the risk that there may be an unknown vulnerability.

In lending, similar to traditional banking, DeFi platforms facilitate lending crypto through smart contracts, with lenders earning interest on their lent assets. This interest is represented as an APR (Annual Percentage Rate), reflecting the straightforward annual rate without compounding. Essentially, lenders receive compensation for loaning out their crypto assets.

Another popular DeFi strategy is liquidity mining, where participants provide liquidity to a pool in exchange for a share of trading fees and additional rewards in the form of tokens. These rewards are also quantified as APR, derived from the fees generated by the liquidity pool and any supplementary incentives provided by the platform.

Moving to staking in proof-of-stake (PoS) crypto networks, participants secure and support network operations by staking their tokens in wallets. In return, they earn rewards directly from the protocol, which are expressed as either staking APR or APY. This compensation is for maintaining network security, validating blocks, and contributing to governance.

In summary, DeFi yields in crypto derive from diverse sources based on the chosen strategy—be it lending, liquidity mining, or staking. Each method carries inherent risks and rewards, making it crucial for investors to comprehend these mechanisms thoroughly.