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Onchain Economics

APR to APY Calculator

Convert Annual Percentage Rate (APR) to Annual Percentage Yield (APY) based on your compounding frequency.

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Enter an amount to see projected growth over time

APY (Annual Percentage Yield)

10.52%

+0.52% compared to APR

Continuous Compounding APY

10.52%

Maximum theoretical yield with infinite compounding

APY by Compounding Frequency

How your 10% APR translates to APY at each compounding frequency.

FrequencyAPYGain vs APR1-Year Earnings
Daily (365x)selected10.52%+0.52%$1,051.56
Weekly (52x)10.51%+0.51%$1,050.65
Bi-weekly (26x)10.50%+0.50%$1,049.59
Monthly (12x)10.47%+0.47%$1,047.13
Quarterly (4x)10.38%+0.38%$1,038.13
Semi-annually (2x)10.25%+0.25%$1,025.00
Annually (1x)10.00%+0.00%$1,000.00
Continuous (∞)10.52%+0.52%$1,051.71

Investment Growth Projection

How $10,000 grows at 10% APR with daily (365x) compounding vs simple interest.

PeriodCompoundedSimple InterestCompounding Bonus
1 month$10,083.67$10,083.33+$0.34
3 months$10,253.12$10,250.00+$3.12
6 months$10,512.64$10,500.00+$12.64
1 year$11,051.56$11,000.00+$51.56
2 years$12,213.69$12,000.00+$213.69
5 years$16,486.08$15,000.00+$1,486.08

Projections assume a constant APR over the entire period. Actual DeFi yields fluctuate. Check live rates on the Stablecoin Yield Screener (data from DefiLlama).

How APR and APY Differ

APR (Annual Percentage Rate) represents the simple annual interest rate without accounting for compounding. It's the rate you'd earn if interest were paid once at the end of the year.

APY (Annual Percentage Yield) accounts for the effect of compounding interest. When you earn interest on your interest, your effective return increases. The more frequently interest compounds, the higher your APY will be relative to APR.

The Formula

APY is calculated using this formula:

APY = (1 + APR/n)^n - 1

Where n is the number of compounding periods per year.

Why This Matters in DeFi

  • Many DeFi protocols advertise APR, but rewards compound frequently (often per block)
  • Auto-compounding vaults can significantly boost your effective yield
  • Understanding APY helps you compare opportunities more accurately
  • Higher APRs show larger differences between APR and APY due to compounding effects

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