Auto Compounding Farm Calculator
Calculate APY and returns with automatic reinvesting
Farm Parameters
Annual percentage rate before compounding
How long will you farm
Frequently Asked Questions
What is auto-compounding in DeFi farming?
Auto-compounding means automatically reinvesting your farming rewards back into the pool. Instead of letting rewards sit idle, they get added to your staked amount, earning more rewards on top of rewards. Many farms offer this feature built-in, or you can manually claim and restake.
How does compounding increase returns?
Compounding lets you earn rewards on your rewards. If you start with $10,000 at 100% APR and never compound, you make $10,000 in a year. But with daily compounding, that same 100% APR becomes 171% APY, earning you $17,100 instead. The more frequently you compound, the higher your returns.
What's the difference between APR and APY?
APR is simple interest without compounding. APY includes compound interest from reinvesting. A farm advertising 100% APR means you double your money if you never reinvest. But that same 100% APR becomes 171% APY with daily compounding, 163% with weekly, or 146% with monthly.
How often should I compound my farm?
It depends on gas costs. On Ethereum, daily compounding might cost $50-200 in gas, eating your gains. On cheap chains like BSC or Polygon, compound as often as the farm allows. Use this calculator to see if the APY boost from frequent compounding outweighs the gas fees.
Do auto-compounding vaults really help?
Yes, especially on high-gas chains. Vaults like Beefy or Yearn compound for you automatically and split gas costs across all users. They might take a 0.5-4% fee, but you save time and gas while getting optimal compounding frequency. Calculate if the vault APY beats manual farming after fees.
Can I lose money from compounding?
Only if gas fees exceed your gains. Compounding itself always increases returns mathematically. But if you're farming $100 and gas costs $20 per compound, you're losing money. Always factor in transaction costs. This calculator shows pure mathematical gains before fees.
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