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Interest = (Principal X APY / 365) X Period one week), here’s an easy formula to calculate how much interest you’re earning every 30 days on a 5% APY 30-day plan, with an initial deposit of 1,000 USDT. If you want to break down your overall APY into specific time frames (e.g. The most straightforward way to calculate your yield based on APY is to multiply the value by your principal. Calculate Your Interest On Crypto With a Crypto APY Calculator For example, if you invest 1,000 USDT at 5% APY in a crypto interest account, you’ll earn 1050 USDT at the end of one year from the deposit date. This means you’ll earn interest on the initial investment, as well as interest earned on that interest.Īnd that’s how APY works in crypto savings plans and DeFi liquidity pools as well. Why APY is higher for cryptocurrencies than banksĪPY is your annual return on an investment that takes into account compound interest that is accrued on top of your initial investment.What you’ll learn about calculating crypto APY in this article: While a higher APY equals a higher yield on your investment, if the number is too high (like 200%), you may want to avoid these projects as they’re too risky for an investor looking for a sensible investment with stable returns. It shows how much you will make on your investment over 12 months unless you withdraw or transfer your funds earlier. If you’ve signed up for a savings account at a bank, you’ve probably seen the acronym APY (Annual Percentage Yield) on your investment.