What is the difference between APR and APY?

APR (Annual Percentage Rate) is the simple interest rate without compounding. APY (Annual Percentage Yield) reflects the real return when interest is compounded over time. For example, 12% APR compounded monthly gives an APY of 12.68%. The difference matters in DeFi and staking: platforms advertising APR are overstating returns if you don't reinvest rewards, while APY assumes constant compounding. Always compare like-for-like when evaluating yields.

How do I convert APR to APY?

The formula is: APY = (1 + APR/n)^n - 1, where n is the number of compounding periods per year. For daily compounding (n=365): APY = (1 + APR/365)^365 - 1. For continuous compounding: APY = e^APR - 1. For example, 10% APR compounded daily = (1 + 0.10/365)^365 - 1 = 10.516% APY. Enter your APR in the calculator and select a compounding frequency to get the exact APY instantly.

What compounding frequency is used in DeFi protocols?

Most DeFi protocols compound rewards continuously or per block (equivalent to continuous compounding). Liquid staking protocols like Lido rebase daily, meaning stETH balances update once per day — equivalent to daily compounding for APY purposes. Yield aggregators like Yearn compound automatically when the harvest function is called, which varies by vault. When comparing DeFi yields, always confirm whether the displayed rate is APR or APY, and use this calculator to standardise comparisons.

Free Tools APR ⇔ APY Converter

🔁

DeFi & Yield

APR ⇔ APY Converter

Convert Annual Percentage Rate (APR) to Annual Percentage Yield (APY) and back. Choose daily, weekly, monthly, or continuous compounding and see a full comparison table of the bonus from each frequency.

No data collected

How This Tool Works

This tool implements the standard compound interest conversion formula used in finance and DeFi yield analysis.

APR → APY: APY = (1 + APR/n)^n − 1
APY → APR: APR = n × ((1 + APY)^(1/n) − 1)
Continuous: APY = e^APR − 1

Where n is the number of compounding periods per year (365 for daily, 12 for monthly, etc.). A 12% APR compounded daily gives 12.7475% APY. The comparison table shows the compounding bonus across all frequencies for any APR you enter.

Learn the Concepts

On-Chain Social Media: Farcaster, Lens Protocol, and Friend.tech Explained

On-chain social media protocols store social graphs, posts, and identities on bl…

Solana in 2026: Ecosystem, Performance, and Competitive Position

Solana in 2026 has emerged as the dominant high-performance blockchain for consu…

Uniswap v4 Hooks Explained: Customizable AMM Logic

Uniswap v4 introduced "hooks" — customizable smart contracts that can inject log…

Intent-Based Trading in DeFi: CoW Protocol, UniswapX, and 1inch Fusion

Intent-based trading is a DeFi execution model where users declare the outcome t…

Restaking and EigenLayer in 2026: EIGEN Token and AVS Ecosystem

EigenLayer is a restaking protocol that allows Ethereum stakers to reuse their s…

Browse full crypto glossary (5+ terms) →

Other Free Tools

📊

Risk & Position Size Calculator

Risk Management

📈

DCA Investment Planner

Investment Planning

💹

Profit / Loss Calculator

Trade Analysis

⚡

Liquidation Price Calculator

Futures Trading

Related Trading Guides

Security

Bitcoin Wallet Security in 2026: Lessons from the $114 Million Coldcard Exploit

The August 2026 Coldcard exploit — which drained over $114 million from Bitcoin wallets through an entropy vulnerability that never required touching the physical device — has rewritten the standard for hardware wallet security. This guide explains the attack mechanics, what affected users must do, and a comprehensive framework for protecting Bitcoin holdings in 2026.

Trading Basics

How to Read a Crypto Order Book: Bid-Ask Spread, Depth Charts, and Market Microstructure

The order book is the most fundamental tool in crypto market analysis. This complete guide covers bid-ask spread, order book depth, the difference between market and limit orders, iceberg orders, spoofing, and order flow analysis — everything needed to read market microstructure fluently.

Passive Income

Restaking in 2026: How EigenLayer, Symbiotic, and Liquid Restaking Tokens Stack ETH Yield

Restaking lets staked ETH simultaneously secure additional decentralised services, earning supplementary yield. This guide explains EigenLayer and Symbiotic mechanics, liquid restaking tokens, yield stacking strategies, and the risks every restaker must understand in 2026.

Browse all trading guides →

Free Newsletter

Enjoyed this tool? Get more like it.

New tools, trading guides, and market analysis delivered weekly. No spam, unsubscribe anytime.