Crypto APY calculator with token inflation
Convert crypto APR to effective APY, project compounded token rewards, and compare nominal balance growth with a token-supply-adjusted result.
The calculator separates quoted APR, compounding frequency, holding time, and token supply inflation. Every balance is denominated in tokens. The adjustment measures relative supply share, not purchasing power or future dollar price.
No market feed is used. Every price, rate, fee, and balance comes from the values you enter.
Your inputs
Inputs and results stay in this browser. Values are capped to keep calculations finite and responsive.
Calculated result
- Effective APY
- 12.75%
- Ending nominal balance
- 12,711.9901 tokens
- Nominal rewards
- 2,711.9901 tokens
- Supply-adjusted balance
- 11,752.9494 tokens
- Supply-adjusted gain
- 1,752.9494 tokens
- Quoted APR
- 12%
Token-equivalent balance after entered supply inflation
The calculation
APR and APY are not interchangeable
APR states a simple annual rate before intra-year compounding. APY includes the effect of reinvesting rewards. At the same APR, more frequent compounding raises APY, but the incremental benefit becomes smaller as frequency increases.
A protocol may label rates differently or show a variable trailing estimate. Confirm whether the displayed rate already includes compounding before converting it again. Compounding an advertised APY would overstate the result.
Why token inflation belongs in the model
A token balance can grow while each unit represents a smaller share of total supply. The supply-adjusted result discounts nominal token growth by the annual token inflation assumption, revealing whether rewards outpace dilution in this simplified model.
Supply inflation is not consumer price inflation and the adjusted balance is not a dollar valuation. Demand, protocol revenue, unlocks, burns, liquidity, and market conditions can overwhelm the mechanical supply effect.
Reward risks the formula cannot capture
Quoted yield can change, compounding may require claims or gas, lockups can prevent exit, validators can be slashed, and smart contracts or bridges can fail. Liquid staking tokens can also trade away from their redemption value.
Model a conservative rate and compare it with the protocol's actual payout history. Treat very high nominal yield as a prompt to inspect reward funding and token emissions, not as evidence of a high expected return.
10,000 tokens at 12% APR
With daily compounding, 12% APR converts to about 12.75% APY. Over two years, 10,000 tokens grow to roughly 12,712 tokens before fees or rate changes. At 4% annual token inflation, the supply-adjusted token-equivalent balance is lower because part of the nominal reward offsets dilution. This does not estimate the tokens' dollar price.
Questions and answers
Is APY guaranteed in crypto staking?
No. Rates, reward tokens, asset prices, validator performance, protocol rules, and access to funds can all change.
How often should I set compounding?
Use the frequency at which rewards are actually reinvested after considering claim rules and costs. Daily is not accurate if rewards are only compounded monthly.
Does token inflation predict price loss?
No. It measures supply dilution under a simplified assumption. Market price depends on supply and demand together.
Method and sources
The formulas run only on your inputs. These references support the definitions and risk notes on this page. They do not supply prices or predict a result.
- CFPB Regulation DD APY appendix
Provides the compounding formula used as a mathematical reference. Regulation DD covers deposit accounts, not crypto products.
- SEC bulletin on crypto interest accounts
Lists custody, liquidity, failure, fraud, and technical risks that a compound-interest formula cannot measure.
Related calculators
Research and risk disclosure
This calculator is an educational planning model, not investment, tax, or trading advice. It does not predict returns or execution. Crypto assets can lose their entire value. Confirm actual fills, fee schedules, funding, taxes, and account balances with the relevant provider before acting.
Built and checked by Michael Lip. Method assumptions are stated on this page so the result can be reproduced independently.