Why this matters
Staking is the primary way holders earn passive income on proof-of-stake networks like Ethereum, Solana, Cosmos, and Cardano. But the gap between nominal APR and effective APY is routinely misunderstood, and that misunderstanding leads to inflated return expectations. A protocol advertising 10% APR might yield 10.52% APY with daily compounding — or stay flat at 10% if rewards are never restaked.
Lock-up periods add another layer of complexity. Committing capital for 12 months at 8% APR looks straightforward until you compare it against a 6-month flexible stake at 7% APR with daily restaking. Without a calculator that models compounding over time, these comparisons rely on guesswork. The compounding frequency alone can add half a percent or more to your annualized return.
This calculator handles the math by letting you specify staked amount, APR, lock-up duration, and compounding frequency, then produces total rewards, final balance, and effective APY. It works for any proof-of-stake token — ETH, SOL, ATOM, ADA, or anything else — because the underlying compound interest formula is protocol-agnostic.
Reference table
| Compounding frequency | Effective APY at 10% APR | Difference vs no compounding |
|---|---|---|
| None (simple interest) | 10.00% | 0.00% |
| Annual | 10.00% | 0.00% |
| Monthly | 10.47% | +0.47% |
| Weekly | 10.51% | +0.51% |
| Daily | 10.52% | +0.52% |
How to use it
Enter the amount you plan to stake, either as a token count or a USD value.
Set the annual percentage rate offered by the staking protocol — for example, enter 5 for 5%.
Choose the lock-up period in years and select your compounding frequency: daily, weekly, monthly, or none.
Review the total rewards earned, your final balance, the effective APY, and the year-by-year breakdown chart.
Testing your result
Verify the calculator output by running a quick manual check for a simple case. Stake 1000 tokens at 10% APR with no compounding for one year — you should see exactly 100 tokens in rewards and 1100 as the final balance. Then switch to daily compounding and confirm the APY reads roughly 10.52%. If those baseline numbers check out, you can trust the results for more complex scenarios.
Common mistakes
Confusing APR with APY — they are only equal when rewards are not restaked.
Forgetting that many PoS chains pay staking rewards from inflation, which dilutes non-stakers. Subtract chain inflation from your nominal APR to estimate real return.
Ignoring slashing risk, which can reduce your principal if your validator misbehaves.
Assuming higher compounding frequency always means significantly more yield — the difference between daily and weekly compounding is marginal.
Edge cases and options
Partial restaking is not directly supported, but you can approximate it by lowering the effective APR. For example, if you restake 50% of rewards and claim 50%, halve the APR before entering it. The calculator also caps its search at 5 years to prevent infinite loops on impossible schedules. For scenarios involving token price changes, run the calculator once with current prices and then mentally model different price trajectories — the tool handles yield math, not price prediction.
Real-world use cases
Comparing Ethereum staking yield against Solana staking to decide where to allocate capital for the next year.
Modeling whether a 12-month locked stake at 12% APR outperforms a flexible stake at 8% APR with daily restaking over the same period.
Calculating expected returns for a DeFi governance proposal that involves changing staking parameters.
Frequently asked questions
Q: Is staking APR the same as staking APY?
A: Only if rewards are not restaked. If you auto-compound, the effective APY will be higher than the APR. This calculator shows both values.
Q: Does this account for slashing risk?
A: No. Slashing penalties for validator misbehavior can reduce your principal. Always stake with reputable validators and only risk what you can afford to lose.
Q: What about inflation?
A: Many PoS chains pay rewards from inflation, which dilutes non-stakers. The nominal APR is what you receive — subtract inflation for real return.
Q: Why is daily compounding better than annual?
A: Compounding more frequently means rewards start earning rewards sooner. At 10% APR, daily compounding gives roughly 10.52% APY versus 10% for no compounding.
Q: Can I model partial restaking?
A: Not directly. You can approximate it by lowering the APR — for example, if you restake 50% of rewards, halve the APR before compounding.
Q: How do I compare two different staking protocols?
A: Run the calculator twice with each protocol's APR and compounding settings, then compare the effective APY and final balance side by side.
Start using it now
Try the Staking Rewards Calculator tool. See also APY ↔ APR Converter, DCA Calculator, and Investment Growth Calculator.
