Crypto Compound Interest Calculator

APR vs APY: What is the Difference?

APR (Annual Percentage Rate) is the simple interest rate per year, without accounting for compounding. APY (Annual Percentage Yield) is the effective annual return when compounding is factored in. The more frequently interest compounds, the higher the APY relative to the APR.

For example, 8% APR compounded daily gives an APY of approximately 8.33%. In DeFi, protocols typically quote APY because compounding is often automatic and frequent.

Where Can You Earn Compound Interest on Crypto?

Compound interest in crypto comes from several sources including stablecoin lending platforms (USDC, USDT, DAI), Ethereum liquid staking (Lido, Rocket Pool), DeFi yield farming and liquidity provision, centralised crypto savings accounts, and automated vaults like Yearn Finance. Rates vary significantly from 3% on conservative stablecoin deposits to over 20% on higher-risk DeFi strategies. Always research the protocol's security, audit history, and counterparty risk before depositing funds.