How are crypto staking rewards calculated?

Staking rewards are calculated as: Annual Reward = Staked Amount × APY ÷ 100. For monthly: divide by 12. For example, staking $10,000 at 5% APY earns $500/year or ~$41.67/month. With compounding (reinvesting rewards), use: Final = Principal × (1 + APY/1200)^months, where rewards earned on rewards are included.

What is the difference between APY and APR for staking?

APR (Annual Percentage Rate) is the simple reward rate without compounding. APY (Annual Percentage Yield) includes the effect of compound interest — reinvesting your earned rewards. For example, 5% APR compounded monthly is approximately 5.12% APY. Most protocols advertise APY, which assumes you reinvest rewards. If you withdraw rewards rather than compounding them, you'll earn the APR, not the APY.

What crypto assets have the highest staking APY?

Staking APY varies significantly by asset and market conditions. As of 2026: Ethereum liquid staking (3–5% APY via Lido/Rocket Pool), Cosmos ATOM (12–18%), Polkadot DOT (12–15%), Celestia TIA (10–15%), Solana SOL (6–8%), and stablecoin lending (4–8% on Aave/Compound). Higher APYs typically come with higher smart contract or protocol risk. Always research the source of yield before staking.

Are staking rewards taxable?

In most jurisdictions (including the US), staking rewards are taxed as ordinary income at the time you receive them, based on the fair market value at receipt. When you later sell the staked tokens, any additional gain above your cost basis (the income value at receipt) is a capital gain. Tax treatment varies by country — consult a tax professional for your specific situation.

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Staking Rewards Calculator

Enter your staked amount, APY, and duration to calculate monthly and total staking rewards with optional compounding. Works for ETH, Cosmos, Solana, and any PoS asset.

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How This Tool Works

Staking rewards are earned as a percentage of your staked amount per year. This tool shows rewards with both simple and compound accumulation.

Monthly Reward = Staked Amount × APY% ÷ 1200
Compounded Balance = Principal × (1 + APY%/1200)^months

With simple staking, rewards are paid out but not reinvested. With compound staking, rewards are added back to the principal, earning additional rewards on rewards — the difference compounds significantly over longer periods.

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