APR vs APY in staking
APR (annual percentage rate) is the simple yearly rate without compounding. APY (annual percentage yield) includes the effect of reinvesting rewards. A 10% APR compounded daily becomes about 10.52% APY. Platforms often advertise the bigger APY figure, so check which one you are looking at.
Net APR = gross APR × (1 − commission)
How the calculator works
The calculator accrues rewards daily on your current balance and adds them to the principal at your chosen compounding interval. Monthly top-ups are added every 30 days. Validator or platform commission is deducted from the rate before compounding, which is how most staking services charge.
Rewards in tokens vs dollars
Staking rewards are paid in the same token you stake. If the token's price falls 30% in a year, a 6% yield does not protect you from a loss in dollar terms. Use the optional price fields to see how price changes affect the real value of your position.
Risks to consider
- Lock-up and unbonding periods can stop you selling during a crash.
- Slashing can remove part of your stake if a validator misbehaves.
- Platform risk: custodial staking depends on the solvency of the provider.
- In the US and Canada, staking rewards are generally taxed as income when you receive them.
Frequently asked questions
How do I convert APR to APY?
Use APY = (1 + APR/n)^n − 1, where n is the number of compounding periods per year. Select APR or APY in the calculator and it converts automatically.
How often should I compound staking rewards?
More frequent compounding earns slightly more, but each claim may cost a network fee. For small balances, claiming weekly or monthly often beats daily once fees are included.
What is a realistic staking yield?
Major proof-of-stake networks such as Ethereum have typically paid around 2–4% recently, while some smaller networks offer higher rates that are often offset by token inflation.
Are staking rewards taxable?
In the US and Canada staking rewards are generally treated as income at their market value when received. Selling them later can also create a capital gain or loss.