Free Calculator • No Signup Required
DeFi Yield Calculator
Compare different DeFi yield strategies and calculate returns with compounding. See how staking, lending, and LP farming compare over time with APY and APR conversions.
Strategy APYs are representative examples for comparison, verify current rates on each protocol before depositing.
Native ETH staking through liquid staking protocols. Low risk, consistent yield from network validation rewards.
✅ This is real yield from protocol revenue, not token emissions.
Final Value (12mo)
$10,356
Total Earnings
+$356
Avg Monthly
$30
With daily compounding, effective APY is 3.6% , you earn $6 more than simple interest ($350).
DeFi yields are everywhere, but comparing them is surprisingly difficult. Protocols advertise rates using different metrics: some show APR, others APY, and compounding frequencies vary wildly. This calculator helps you cut through the confusion and understand exactly what your returns will be.
The difference between APR and APY can be significant. A protocol advertising 100% APR with daily compounding actually delivers 171.5% APY due to compound interest. Without understanding this, you might underestimate returns from auto-compounding strategies or overestimate simple staking rewards.
This calculator helps you compare apples to apples by converting between APR and APY, factoring in different compounding frequencies, and projecting returns over your desired time horizon. It's essential for making informed decisions about where to deploy your capital across DeFi protocols.
APR ↔ APY
Convert between rates
Compounding
Calculate compound growth
Compare Yields
Strategy comparison
The distinction between APR and APY is crucial for accurately comparing DeFi yields. Using the wrong metric can lead to significantly over- or under-estimating your returns.
APR (Annual Percentage Rate)
APR is the simple interest rate without any compounding. It represents the base rate you earn before reinvestment.
Example: $10,000 at 10% APR for 1 year = $1,000 interest (total: $11,000)
APY (Annual Percentage Yield)
APY includes compound interest: the interest you earn on your interest. It's always higher than APR when compounding occurs.
Where n = number of compounding periods per year
The Power of Compounding
The more frequently you compound, the higher your effective APY. Here's 10% APR at different compounding frequencies:
Annually
10.00%
Monthly
10.47%
Weekly
10.51%
Daily
10.52%
Different DeFi strategies offer varying yields, risks, and complexity levels. Here's how they typically compare:
Staking
Low RiskLock tokens to secure a network and earn rewards. Returns vary by network (3-15% typical for major chains).
Lending
Medium RiskSupply assets to lending protocols like Aave or Compound. Rates fluctuate based on utilization (1-10% typical).
Liquidity Provision
Higher RiskProvide liquidity to DEXs and earn trading fees plus incentives. Can offer 20-100%+ APY but with impermanent loss risk.
Yield Aggregators
VariesProtocols like Yearn auto-compound and optimize across strategies. Convenience at the cost of additional smart contract risk.
Example 1: Staking ETH
Principal: $10,000
APR: 4.5%
Compounding: None (simple)
Duration: 1 year
Calculation:
$10,000 × 4.5% = $450
Returns: $450 (4.5% APY)
Example 2: Yield Farm with Auto-Compound
Principal: $10,000
APR: 50%
Compounding: Daily
Duration: 1 year
Calculation:
(1 + 0.50/365)^365 - 1 = 64.8% APY
Returns: $6,480 (64.8% APY)
vs $5,000 without compounding
Example 3: Manual Monthly Compounding
Principal: $10,000
APR: 20%
Compounding: Monthly (manual)
Duration: 1 year
Calculation:
(1 + 0.20/12)^12 - 1 = 21.94% APY
Returns: $2,194 (21.94% APY)
$194 extra from compounding
Factor in Gas Costs
Frequent compounding only makes sense if gas costs are less than the extra yield generated. Calculate break-even points before manually compounding.
Understand Real Yield vs Emissions
High APY from token emissions may not be sustainable. Check if yields come from actual protocol revenue or just inflationary rewards that dilute token value.
Diversify Across Protocols
Don't put all funds in one protocol. Smart contract risk is real. Spread capital across multiple audited protocols for safety.
Account for Token Price Changes
If you earn rewards in a volatile token, your actual USD yield depends on when you sell. Consider selling rewards regularly to lock in gains.
DeFi trading hub
Pillar for yield and DEX strategy
Related Articles
Stablecoin yield strategies
APY vs risk — use the calculator with a thesis
Impermanent loss explained
Yield without netting IL is marketing
Yield farming as active trading
Measure farm P&L vs buy-and-hold
DeFi lending and borrowing
Borrow rates vs yield
What is DeFi trading?
Context for yield as a trade
Compare Thrive plans
Track rotations like trades in the journal
Add this free calculator to your site. It links back to Thrive.
<iframe src="https://thrive.fi/embed/tools/yield-calculator" title="Thrive yield-calculator calculator" width="100%" height="520" style="border:0;border-radius:12px" loading="lazy"></iframe>
Find the Best Yields Automatically
Track yield opportunities across DeFi protocols, get alerts on new high-yield farms, and monitor your positions with Thrive's DeFi analytics dashboard.