BCBetter Calculators

Crypto Compound Interest Calculator

Project crypto portfolio growth with compound interest or staking reinvestment.

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Enter your values and click Calculate

How It Works

Monthly rate r = APY ÷ 12. Total periods t = years × 12. Future Value of Principal = P × (1 + r)^t. Future Value of Monthly Contributions = PMT × [(1 + r)^t − 1] ÷ r. Total Portfolio Value = FV_principal + FV_contributions. Total Yield = Total Value − (Principal + PMT × t). Worked example: $10,000 at 12% APY, 5 years, $200/month contributions. r = 0.12 ÷ 12 = 0.01. t = 60 months. FV_principal = $10,000 × (1.01)^60 = $10,000 × 1.8167 = $18,167. FV_contributions = $200 × [(1.01)^60 − 1] ÷ 0.01 = $200 × 81.67 = $16,334. Total = $34,501. Total contributed = $10,000 + ($200 × 60) = $22,000. Yield earned = $34,501 − $22,000 = $12,501. The contributions formula is the future value of an ordinary annuity — each monthly addition earns interest for all remaining periods. Dollars deposited early compound for the full duration; dollars added in month 59 barely compound at all. This is why front-loading contributions has an outsized long-term impact.

Examples

DeFi Yield Farming
$10,000 at 12% APY for 5 years, adding $200/month.
Result: Final value: ~$34,500 on $22,000 contributed — $12,500 in earned yield.
Staking Only
$50,000 staked at 5% APY for 10 years, no extra contributions.
Result: Final value: ~$82,450 — $32,450 in yield earned purely through compounding.
Long-Term Compound Growth
$10,000 at 12% APY for 10 years with $200/month contributions.
Result: Final value: ~$79,000 on $34,000 contributed — yield exceeds total contributions, showing compounding acceleration in the second half.

Frequently Asked Questions

What is APY in crypto?
APY (Annual Percentage Yield) reflects the effective return including compounding. If a staking protocol distributes rewards daily and you reinvest them, your effective return is higher than the quoted base rate. For example, a 12% APR compounded monthly results in an effective APY of approximately 12.68%. Always check whether a protocol quotes APR (simple) or APY (compounded) to avoid overestimating returns — the distinction matters more at higher rates.
Is 12% APY realistic in crypto?
Some staking and DeFi protocols do offer 5–20% APY, particularly during periods of high demand for liquidity or when new protocols offer elevated rates to attract capital. However, higher yields typically carry higher risks — smart contract vulnerabilities, protocol insolvency, liquidation cascades, and impermanent loss are all real mechanisms through which DeFi yields can be partially or fully lost. Rates also fluctuate constantly as market conditions change; the APY you earn today may be half that rate six months from now.
How does this differ from traditional compound interest?
The mathematical formula is identical — both use the same future value of an annuity equation. The practical differences are that crypto yields tend to be higher but more volatile, staking rewards are often distributed more frequently (daily or continuously rather than monthly), and the underlying asset can itself appreciate or depreciate in USD terms. Traditional savings accounts offer predictable but low yields; crypto yields offer higher potential but introduce principal risk that a bank deposit does not carry.

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