How much can a staked balance grow at an entered reward rate?
A staking projection applies an entered annual reward rate over time and, where configured, compounds rewards back into the balance. It measures token growth or value under fixed assumptions, not protocol safety.
Applying the stated compounding schedule
i = APR ÷ 100 ÷ Compounds per yearFinal = Amount × (1 + i)^(Compounds per year × Years)Rewards = Final − AmountA fixed-rate staking illustration
The default example starts with the entered stake and applies the displayed compounding schedule for the selected term. Supporting outputs separate rewards from the final balance.
Illustrative inputs; currency amounts below use USD. Rates and prices are assumptions, not live quotes.
- Amount staked
- $5,000.00
- Annual rate (APR)
- 8%
- Years
- 3
- Compounds per year
- 365
Step-by-step calculation
- Periodic nominal rate = 8 ÷ 100 ÷ 365 = 0.000219. The input is APR, before compounding.
- Number of periods = 365 × 3 = 1,095. Final stake = 5,000 × (1 + periodic rate)^periods = 6,356.0786.
- Rewards = 6,356.0786 − 5,000 = 1,356.0786. An advertised APY must not be entered as APR because it already includes compounding.
Intermediate figures are rounded for reading. Results use the full calculation precision.
Token growth is not currency performance
Compounding frequency changes how often rewards begin earning further rewards. The difference is usually small at low rates and short horizons but grows with time.
Protocol and price risks outside the arithmetic
A token-denominated reward can rise while its market value falls. Do not read projected token growth as a guaranteed currency return.
- The entered nominal annual rate (APR), before compounding, remains constant throughout the term.
- Rewards are reinvested according to the formula’s compounding schedule.
- Token price, lock-up risk, slashing, validator fees and tax are excluded.
Calculations related to staking rewards
The following tools examine neighbouring parts of the same calculation without changing the inputs or assumptions used above.
References
Sources and conventions
- Ethereum: staking mechanics and risks
- CFPB: annual yield and compounding
Explains the mathematical distinction between an interest rate and effective annual yield for deposits; staking is not a bank deposit.
Quick answers
Frequently asked questions
How does compounding frequency affect staking rewards?
More frequent compounding applies the periodic rate more often under the calculator's constant-APR formula.
Can I enter an advertised APY here?
Not directly. APY already includes compounding; this tool expects a nominal annual rate (APR). Entering APY as APR would compound the yield again. Token-price changes are not modelled.
Are staking fees or slashing included?
No. The formula compounds the full calculated rewards without deductions.
Calculation method and limitations · Report an error
Educational content only. This guide is not financial advice.