Crypto Compounding Calculator: How to Project Growth (APY, APR, Contributions)
Crypto Compounding Calculator: The Practical Guide to APY, Frequency, and Contributions
A crypto compounding calculator helps you forecast how your holdings can grow when rewards are reinvested. You’ll see the exact effect of APY vs APR, compounding frequency (daily/weekly/monthly), and ongoing deposits—plus how fees or funding change the outcome. When you want to model profit, ROI and breakeven for trades, jump to our Free Crypto Profit Calculator.
What is a crypto compounding calculator?
It’s a tool that projects your future balance when you reinvest rewards at regular intervals. You choose the starting amount, the yield (APY/APR), compounding frequency, time horizon, and any ongoing contributions; the calculator returns your future value (FV), total contributions, and total growth.
How the calculator works (inputs & outputs)
| Input | What it means |
|---|---|
| Initial Principal (P) | Your starting amount (e.g., in USDT or token units). |
| APR or APY (r) | APR is a nominal annual rate; APY includes compounding. See formulas below for conversion. |
| Compounding Frequency (m) | How often rewards are added to principal (daily/weekly/monthly/quarterly). |
| Time Horizon (t) | Years (e.g., t=2 = 24 months). |
| Recurring Contribution (PMT) | Amount added every period (e.g., $100 each month). Choose end-of-period or start-of-period. |
| Costs (C) | Optional. Total fees or borrow/funding you want to deduct across the term (can be modeled as a reduction to r or subtracted at the end). |
Outputs: Future value (FV), total contributions, and total growth (FV − total contributions). For trade-specific PnL/ROI, use the Free Crypto Profit Calculator.
Core formulas you’ll actually use
Let m = compounding periods per year (365 daily, 52 weekly, 12 monthly). Rates are decimals (e.g., 0.10 = 10%).
Future value without contributions
FV = P · (1 + r/m)m·t
Future value with regular contributions (ordinary annuity, paid at period end)
FV = P · (1 + r/m)m·t + PMT · \[\frac{(1 + r/m)^{m·t} − 1}{r/m}\]
If contributions are at period start (annuity due)
FVbegin = P · (1 + r/m)m·t + PMT · \[\frac{(1 + r/m)^{m·t} − 1}{r/m}\] · (1 + r/m)
APR ↔ APY conversion
- From APR to APY: APY = (1 + APR/m)m − 1
- From APY to nominal APR (given m): APR = m · \[(1 + APY)^{1/m} − 1\]
Worked examples
Example A — Monthly compounding with contributions
- Inputs: P = $2,000, APR = 10%, monthly compounding (m=12), t=2 years, contribution PMT = $100 at month end.
- Results: FV ≈ $5,085.47; total contributed $4,400; total growth ≈ $685.47.
- If contributions are at the start of each month: FVbegin ≈ $5,107.51 (≈ $22.04 more over 2 years).
Example B — Daily compounding without contributions
- Inputs: P = $10,000, APR = 5%, daily compounding (m=365), t=3 years.
- Results: FV ≈ $11,618.22. Simple interest would be $11,500; daily compounding adds about $118.22.
Example C — Convert APY to nominal APR (weekly compounding)
- Given: APY = 12%, weekly compounding (m=52).
- Periodic rate: ((1 + 0.12)^{1/52} − 1) ≈ 0.2182% per week.
- Nominal APR: ≈ 11.345%.
Fees, funding & realistic assumptions
- Maker/taker & network costs: Reduce the effective rate by a small buffer or subtract expected costs as a lump sum at the end (−C).
- Variable yields: When APY changes, split the horizon into segments and compound piece-by-piece.
- Token vs fiat: Compounding usually grows your token balance. Fiat value also depends on price; use our Free Crypto Profit Calculator to model price scenarios.
- Funding/borrow: If you earn/owe periodic funding, adjust the periodic rate (r/m) accordingly.
Pro tips for compounding
- Automate contributions: Even small, consistent deposits accelerate growth.
- Mind frequency: Daily vs monthly matters; higher frequency slightly increases FV, especially at higher rates.
- Consider slippage: If rewards are swapped to another token, budget a small rate haircut.
- Stress test: Run best-/base-/worst-case rates to see sensitivity.
Open an account & optimize your yields
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FAQ: Crypto Compounding Calculator
What does a crypto compounding calculator do?
It projects your future balance when rewards are reinvested, factoring APR/APY, compounding frequency, time horizon, and contributions.
What’s the difference between APR and APY?
APR is a nominal yearly rate. APY is the effective yearly return including compounding. For a given frequency m, APY = (1 + APR/m)^m − 1.
How do I include ongoing deposits?
Use the contribution formula. For deposits at period end, add PMT · \[((1 + r/m)^{m·t} − 1)/(r/m)\] to the base compounding result.
Does compounding frequency matter?
Yes. More frequent compounding slightly increases FV, especially at higher rates and longer horizons (daily > monthly > quarterly).
Does the calculator include token price changes?
No—compounding grows token balance. To estimate fiat outcomes with price paths, use our Free Crypto Profit Calculator.
