How to Use the DeFi Yield Farming Return Calculator
DeFi yield farming (or staking) means locking up your crypto in a protocol to earn rewards at a given APR. This calculator takes your stake amount, APR, holding period, and compounding frequency to estimate your final balance and net profit.
The compounding frequency determines how often rewards are reinvested. Daily compounding produces a higher effective yield (APY) than the same APR compounded weekly or monthly.
This tool assumes a constant APR for the entire period, which is a simplification — real DeFi yields fluctuate with liquidity, token price, and smart contract risk (including rug pulls), so treat the result as an estimate rather than a guarantee, and always check a protocol's audit history before investing.
Frequently Asked Questions
APR is the simple annual rate without compounding, while APY reflects the effect of reinvesting rewards. Shorter compounding periods produce a higher APY than APR.
Unlike a bank deposit, your principal is not guaranteed. Smart contract exploits and sharp token price drops (including impermanent loss) are real risks, so start small with well-audited protocols.