What is the APR to APY formula?

APY = (1 + APR/n)^n − 1 for n compounding periods per year. Continuous compounding uses e^APR − 1.

Should I use daily or monthly compounding?

Match the protocol’s stated frequency. Many money markets compound continuously or per block. Daily is a common approximation.

Does APY include token rewards?

This converter is rate math only. Add incentive APR from emissions separately if you want an all-in yield estimate.

How to convert APR to APY for crypto yields

Understand APR versus APY, compound frequency, and how CryptonicTools converts advertised rates into effective annual yield.

Open the tool

Yield products advertise APR or APY interchangeably. Converting between them with a clear compound frequency stops you from comparing mismatched rates.

Launch APR to APY Converter →

Purpose

Yield products advertise APR or APY interchangeably. Converting between them with a clear compound frequency stops you from comparing mismatched rates.

When to use it

A protocol shows APR and you want effective APY
You are comparing two staking products with different compound schedules
You need a quick sanity check before depositing into a farm
You are explaining compounding to a newer investor

How to use it

Enter the APR. Type the advertised annual percentage rate.
Set compound frequency. Choose how often rewards compound (daily, weekly, monthly, etc.).
Read APY. Review the effective annual yield under that compound assumption.
Compare apples to apples. Convert both products to the same APY basis before ranking them.

Benefits

Makes APR/APY marketing claims comparable
Shows how compound frequency changes effective yield
Fast, local math with no account
Links to staking rewards for longer projections

Pitfalls to avoid

Advertised rates can change and may include temporary incentives
Impermanent loss and token emissions are not in a simple APR→APY convert
Smart-contract and custody risk are separate from the math
Not a promise of realized return

APR versus APY in plain language

APR is the simple annual rate without intra-year compounding. APY folds compounding in. Daily compound at the same nominal APR produces a higher APY than annual compound. If two dashboards disagree, check which definition they use and how often they compound.

CryptonicTools applies standard compound conversion so you can normalize marketing pages before you deposit.

Benefits when shopping DeFi yields

Farms often quote eye-catching APRs that assume reinvestment you must do manually. Convert to APY with a realistic frequency, then stress-test with staking rewards or IL tools if the position is an LP. Numbers still ignore rug and oracle risk.

Purpose of this converter

The purpose is clarity, not yield hunting. Once APR and APY speak the same language, you can decide whether the extra complexity of a farm is worth the spread over simpler staking. Always read protocol docs and risk disclosures.