Staking Yield Calculator
Break through the illusion of high APYs to calculate your real daily profits.
The Truth About Staking Returns: APY Is Not Your Actual Profit
When a DeFi protocol advertises "120% APY," most people calculate: $1,000 invested becomes $2,200 in a year. Reality rarely works that way. APY is an annualized figure based on the current rate compounded — but rates change daily and typically decline as more capital floods in.
The bigger risk is token price. Suppose you stake a token at 100% APY. After a year, your token count has doubled, but the token price dropped 60%. Your actual return: 2 × 0.4 - 1 = -20%. You lost money. High APY often signals high inflation, heavy sell pressure, and elevated price-decline risk.
How to Use This Calculator
Enter your staking amount, the annual rate (APR or APY), and how often you compound (daily, weekly, or not at all). The calculator shows expected returns across different timeframes: daily, monthly, and annual.
Key distinction: if you enter an APR and select "daily compounding," the calculator converts it to an effective APY. For example, 36.5% APR compounded daily equals roughly 44% APY. If the protocol already quotes APY, select "no compounding" to see the equivalent simple-interest return.
FAQ
What is the difference between APR and APY?
APR is based on simple interest, whereas APY takes into account the effect of compound interest. If rewards are frequently reinvested, APY will be significantly higher than APR.
Why is my actual return always lower than the displayed APY?
Three reasons: First, APY is calculated from the current rate, but rates decline over time as more capital enters the pool and dilutes returns. Second, claiming and re-staking rewards costs gas fees — for small positions, gas can eat 10-30% of your yield. Third, if you are staking a non-stablecoin, price depreciation can offset or exceed your interest earnings. 100% APY does not mean your money doubles in a year.
What is slashing risk in staking?
Slashing is a penalty mechanism in Proof of Stake networks: if the validator you delegate to misbehaves (double-signing, extended downtime), a portion of your staked tokens gets confiscated. On Ethereum, typical slashing penalties are 1-2 ETH, but in extreme cases (correlated mass failures), the penalty can reach your entire stake. Choosing validators with long track records and good reputation reduces this risk but cannot eliminate it.
Is it better to stake on a CEX or self-custody?
CEX staking (Binance, Coinbase) is simple — one click and you are earning. But you trust the exchange with custody of your assets. Self-custody staking (running your own node or using Lido/Rocket Pool) gives you full control but requires technical knowledge and higher minimum stakes. A middle ground is decentralized staking protocols like Lido: you keep control of your wallet while receiving liquid staking tokens (stETH) that you can continue using in DeFi.
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