Staking & Compound Interest Calculator
| Year | Interest Earned | Total Balance |
|---|
Staking APY vs. APR
In Decentralized Finance (DeFi) and crypto staking, rewards are paid in yields. APR (Annual Percentage Rate) represents the simple interest rate over a year without compounding. APY (Annual Percentage Yield) includes the effect of compound interest, where your earned tokens are periodically added back to your balance to generate further rewards.
The Power of Compounding
Compound interest makes your holdings grow exponentially over time. By compounding daily, your staking returns accumulate faster compared to compounding monthly or annually, because rewards start earning interest almost immediately.