Staking Rewards Compounding Calculator
Project your future earnings with compound interest and price appreciation.
How This Tool Works
Albert Einstein reportedly called compound interest the "eighth wonder of the world." This calculator shows why. It projects the future value of your staked crypto by factoring in not just the interest rate, but the frequency of reinvestment (compounding).
- Formula:
A = P(1 + r/n)^(nt) - The Logic: If you earn 10% APY and restake your earnings daily, you end up with more than if you just held for a year.
How to Use
- Staked Amount: How many coins do you have?
- APY/APR: The interest rate offered by the protocol or validator.
- Compounding Frequency: How often do you claim and restake? (Daily/Weekly/Monthly).
- Duration: How long will you hold?
- Token Price (Optional): Enter the current price to see the USD value.
Example Calculation
You stake 1,000 DOT at 12% APR.
You compound Weekly.
Price stays at $5.00.
• After 1 Year: 1,127.3 DOT (+$636.50)
• Effective APY: 12.73% (Higher than the 12%
APR!)
Why This Estimates ROI
Small differences in compounding frequency add up over time. This tool helps you optimize your strategy—balancing high reward frequency against the effort/fees of claiming.
Limitations & Disclaimer
• It assumes the APY remains constant (in reality, it often drops as
more
people stake).
• It does not account for gas fees (transaction costs) for
claiming/restaking.
FAQs
APR (Annual Percentage Rate) does not include compounding. APY (Annual Percentage Yield) does. If you reinvest your rewards daily, you are earning APY, which is higher than APR.
It depends on gas fees. If fees are low (like on Solana or Polygon), daily compounding is best. If fees are high (Ethereum), weekly or monthly is often more profitable to avoid eating into profits.
In most jurisdictions (like the US), yes. Staking rewards are typically treated as income at the fair market value when received. Selling them later triggers capital gains tax.