Yield Farming Calculator — DeFi APY & Earnings Projections
Calculate DeFi yield farming returns with compound interest. Enter your principal, APR, compounding frequency, and duration to see final value, total earnings, and daily/weekly/monthly income breakdowns.
Annual Percentage Rate (before compounding)
Duration: 365 days (12m 5d)
Final Value
$16,481.57
Total Earnings
+$6,481.57
Effective APY
64.82%
Daily
$17.76
Weekly
$124.30
Monthly
$540.55
* Earnings breakdown is approximate (averaged over the full duration). Actual daily returns vary with compounding.
Last reviewed · How we check our calculators
How to Use the Yield Farming Calculator
Enter your principal — the amount you are depositing into the yield farming protocol. Then enter the advertised APR (Annual Percentage Rate — the simple rate before compounding). Select the compounding frequency: daily compounding is most common in DeFi (auto-compounding vaults reinvest rewards every block or every few hours). Finally, set your duration in days using the slider.
The calculator compounds your returns at the selected frequency and shows the final value, total earnings, and an earnings breakdown by day, week, and month. The effective APY is also shown — what the APR becomes once rewards are reinvested at the compounding frequency you selected.
Keep in mind that APYs in DeFi are variable. The rate shown today can change dramatically as more liquidity enters or exits the pool, or as token reward prices fluctuate. Use this calculator for planning, not as a guaranteed return forecast.
The Formula
The calculator uses the standard compound interest formula, adapted for any compounding frequency:
- Periodic Rate (r) = (APR/100) ÷ n, where n = number of compounding periods per year
- Number of Periods = durationDays / (365 / n)
- Final Value = Principal × (1 + r)^periods
- Total Earnings = Final Value − Principal
- Daily Earnings ≈ Total Earnings / durationDays
- Effective APY = (1 + r)^n − 1
For example, at 100% APR with daily compounding for 365 days, the periodic rate is 1 ÷ 365 ≈ 0.274% per day. The final value of a $10,000 principal would be about $27,146 — an effective APY of ~171.46%.
Practical Examples
Example 1 — Stablecoin Vault at 15% APR
- Principal: $10,000
- APR: 15% | Compounding: Daily | Duration: 365 days
- Final Value: ~$11,618
- Total Earnings: ~$1,618
- Daily: ~$4.43 | Monthly: ~$134.94
Stablecoin yield farming offers more predictable returns with little price risk, making it popular for conservative DeFi participants. Lending and stablecoin pools on protocols like Aave, Compound and Curve have historically paid anywhere from low single digits to the mid-teens, and the rate changes with borrowing demand — treat today's APR as a snapshot, not a promise.
Example 2 — Liquidity Pool at 200% APR
- Principal: $5,000
- APR: 200% | Compounding: Daily | Duration: 90 days
- Final Value: ~$8,176
- Total Earnings: ~$3,176
- Monthly: ~$1,074
Very high APYs are common for new token launches or incentivized pools, but they are rarely sustainable. Token reward prices can collapse, and the APY may drop 80–90% within weeks. Short durations with high APYs require active monitoring and frequent reinvestment of rewards.
Example 3 — Does Compounding Frequency Matter?
The same $10,000 at 15% APR for one year, compounded at different intervals:
- Yearly: $11,500
- Monthly: $11,608
- Daily: $11,618
At moderate rates, compounding more often than monthly adds only a few dollars a year. If you compound by hand, each harvest-and-restake costs network fees, so on a small deposit frequent compounding can earn less than it costs. Auto-compounding vaults solve this by pooling the fees, in exchange for a performance fee of their own.
APY vs APR — What Is the Difference?
APR (Annual Percentage Rate) is the raw rate without compounding. APY (Annual Percentage Yield) includes the effect of compounding. A 100% APR with daily compounding becomes ~171.46% APY. DeFi protocols often advertise APY to make returns look higher. Always check whether a protocol shows APR or APY — and use this calculator with the correct value.
Frequently Asked Questions
Yield farming is the practice of depositing crypto assets into DeFi protocols — such as lending platforms, liquidity pools, or staking contracts — to earn rewards. Returns come from trading fees, interest paid by borrowers, or token incentives distributed by the protocol. Yield farming can generate returns far exceeding traditional finance, but comes with risks including smart contract exploits, token price volatility, and impermanent loss.
APR (Annual Percentage Rate) is the simple interest rate without compounding. APY (Annual Percentage Yield) accounts for compounding — it shows what you would actually earn if you reinvest rewards at the same rate throughout the year. At 100% APR with daily compounding, the true APY is approximately 171.5%. DeFi protocols often advertise APY, while traditional finance typically uses APR. This calculator accepts APY as input.
More frequent compounding produces higher effective returns. At 50% APY, the difference between annual and daily compounding is minimal (because APY already bakes in the compounding effect). However, when rewards must be manually harvested and reinvested, the actual compounding frequency matters — daily compounders outperform monthly compounders over a year at the same APR. Auto-compounding vaults (like Yearn or Beefy Finance) reinvest rewards automatically, maximizing effective APY.
High APYs — often 100–1000%+ for new protocols — are generally not sustainable long-term. They are typically funded by new token emissions, which dilute the token supply. As more liquidity enters the pool chasing yield, APY drops. Additionally, if the reward token's price falls, the USD-denominated APY collapses. Sustainable yields in DeFi tend to be those backed by real protocol revenue (trading fees, interest), typically 5–30% APY.
Key risks include: (1) Smart contract risk — bugs or exploits can drain funds; (2) Token price risk — reward tokens can lose value rapidly; (3) Impermanent loss — in LP positions, price divergence reduces value vs HODLing; (4) Rug pull risk — malicious projects can drain liquidity; (5) Regulatory risk — DeFi regulations are evolving. Always use audited protocols, diversify across multiple strategies, and never invest more than you can afford to lose.
Embed This Calculator on Your Website
Free for blogs, forums and tipster sites. Paste this HTML where the calculator should appear — it resizes automatically.
<div class="calcvault-embed" style="max-width:700px;margin:0 auto;">
<script src="https://www.calcvault.co/widget.js" data-calc="yield-farming-calculator" data-backlink="inline"></script>
<p style="text-align:center;margin:6px 0 0;font-size:12px;font-family:system-ui,sans-serif;"><a href="https://www.calcvault.co/calculators/yield-farming-calculator">Yield Farming Calculator by CalcVault</a></p>
</div>