What is the difference between APR and APY in staking?

APR (Annual Percentage Rate) is the simple rate without compounding. APY (Annual Percentage Yield) reflects the effect of compounding — reinvesting rewards back into the stake. Daily compounding at 12% APR gives a slightly higher effective APY.

Are staking rewards guaranteed?

No. Staking APYs fluctuate based on network participation and protocol parameters. Smart contract bugs and token price changes also affect your real returns. Always research the protocol risks.

Staking Rewards Calculator

Calculate crypto staking rewards with compound interest given APY, staked amount, and duration.

By AbraCalc Editorial Team · Reviewed by AbraCalc Methodology Review · Last reviewed: 2026-06-25

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How to use this tool

Enter the number of tokens you plan to stake.
Enter the current APY offered by the staking protocol.
Select the compounding frequency (daily compounding maximises returns).
Enter the staking duration in years.
Read your projected rewards and final token balance.

Estimate how many tokens you will earn by staking. More frequent compounding increases your effective yield. Not financial advice — staking APYs are variable and protocols carry risk.

Formula

Final balance = Principal × (1 + APY/n)^n×t

Rewards = Final balance − Principal

Effective APY = ((1 + APY/n)ⁿ − 1) × 100

where n = compounding frequency per year, t = years.

How it works

This calculator applies the standard compound-interest formula to crypto staking, treating the stated APY as a nominal annual rate and compounding it at the specified frequency (e.g. daily = 365 times per year). The effective APY shows the true annualised return after compounding, which exceeds the nominal rate when compounding occurs more than once per year.

The model assumes constant reward rates and that rewards are automatically re-staked at each interval, which may not match all protocols. Slashing risk, validator downtime, and token price changes are not included.

Worked example

Worked example: 1,000 tokens staked at 0% APY for 1 year

Principal = 1,000 tokens; APY = 0%; compounding frequency = 365; duration = 1 year.
Final balance = 1,000 × (1 + 0/365)^(365×1) = 1,000 × 1^365 = 1,000 tokens.
Rewards = 1,000 − 1,000 = 0 tokens.
Effective APY = (1^365 − 1) × 100 = 0%.

Rewards earned: 0 tokens; final balance: 1,000 tokens; effective APY: 0%.

Key terms

APY (Annual Percentage Yield): The effective annual return including compounding; often used in DeFi to express staking or liquidity rewards.
Compounding frequency: How many times per year staking rewards are added back to the principal and begin earning additional rewards.
Effective APY: The true annualised yield after accounting for compounding; higher compounding frequency increases effective APY above the nominal rate.
Staking: Locking crypto tokens in a proof-of-stake network or protocol to earn rewards in return for supporting network security or liquidity.
Slashing: A penalty in proof-of-stake systems where a validator loses a portion of staked tokens for misbehaving or going offline.

Frequently asked questions

What is the difference between APR and APY in staking?: APR (Annual Percentage Rate) is the simple rate without compounding. APY (Annual Percentage Yield) reflects the effect of compounding — reinvesting rewards back into the stake. Daily compounding at 12% APR gives a slightly higher effective APY.
Are staking rewards guaranteed?: No. Staking APYs fluctuate based on network participation and protocol parameters. Smart contract bugs and token price changes also affect your real returns. Always research the protocol risks.