How to use APR to APY Converter
Enter nominal APR and compounding frequency to see effective APY and an illustrative dollar yield on a $1,000 principal over one year. Match frequency to what the protocol documents.
Example: converting a 12% APR to APY
A staking pool advertises 12% APR. How much do you really earn if rewards compound?
- APY = (1 + APR ÷ n)^n − 1
- Monthly (n = 12): 12.68%
- Daily (n = 365): 12.75%; continuous: 12.75%
On $1,000 for a year, monthly compounding returns about $126.83, versus $120 at 12% simple interest. The more often rewards compound, the higher the APY.
Formula & methodology
APY=(1+APR/n)^n−1 for n periods per year. Continuous compounding uses e^APR−1. Displayed percentages multiply by 100 for readability. Dollar yield assumes simple growth at that APY without fees.
Convert APR to APY for staking and DeFi
Protocols often mix APR and APY in marketing, which makes comparisons hard. Converting APR to APY with an explicit compounding assumption puts staking, money markets, and CeFi earn products on the same footing.
Daily compounding is a common DeFi approximation. Continuous compounding mirrors per-block interest models. If a farm quotes “APR” but auto-compounds rewards, economic APY can be higher or lower after emissions dilution and fees.
Use this for rate math only, then sanity-check with historical price and portfolio tools when you decide whether yield offsets market risk. Nothing here promises returns.
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