Staking Yield Calculator

Frequently Asked Questions

What yield can I expect from staking Ethereum?

Ethereum staking yields range from 3-5% annually as of 2025. Solo stakers (32 ETH minimum) earn slightly more than pooled stakers (e.g., Lido, Coinbase) due to no fees, but require technical setup.

How is crypto staking taxed?

In the US, staking rewards are taxed as ordinary income at fair market value when received (per 2023 IRS Revenue Ruling 2023-14). When you later sell, additional capital gains/losses apply on price changes.

What are the risks of staking?

Slashing (penalties for validator misbehavior), lock-up periods that prevent selling during crashes, smart contract bugs (for liquid staking), and exchange counterparty risk if using a centralized service.

Why do staking yields vary so much by coin?

Higher yields (e.g., 10-20% on smaller chains) usually reflect inflation - your share grows but token value dilutes. Real yield = stated yield minus inflation rate. Always check tokenomics before chasing high APYs.

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Estimates for informational purposes only.

Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How This Calculator Works

This tool projects how a staked balance grows over time. With periodic compounding it applies the standard formula Final = P × (1 + r ÷ n)^n×t, where P is the amount staked, r the APR as a decimal, n the number of compounding periods per year (365 daily, 52 weekly, 12 monthly, 1 yearly), and t the number of years. Choosing "None" switches to simple interest, P × (1 + r×t), which models rewards you withdraw instead of restake. It also reports the effective APY - the true annual return once compounding is included.

APR vs APY - the Number That Matters

APR is the headline simple rate; APY is what you actually earn after rewards are restaked and themselves earn rewards. At 8% APR, daily compounding lifts the effective return to about 8.33% APY; at 20% APR it becomes roughly 22.1%. The higher the rate and the more frequent the compounding, the wider the APR–APY gap. Always compare staking options on APY, and check whether a platform's rewards auto-compound or require manual claiming and re-staking (which costs gas and time).

Typical Network Yields

Ethereum: roughly 3–5%, varying inversely with the total amount staked network-wide.

Solana, Cardano, Polkadot: commonly in the 5–15% range, often partly funded by token inflation.

Cosmos-ecosystem chains: can advertise 15–25%+, but high nominal yields usually reflect high inflation that dilutes holders.

A nominal yield well above the network's inflation rate is the figure that signals real purchasing-power growth.

Risks the Yield Number Hides

Price volatility: a 10% yield is meaningless if the token falls 40%. Returns here are denominated in the coin, not USD.

Slashing: validators that double-sign or go offline can have a slice of stake destroyed - delegators share that loss.

Lock-ups and unbonding: many chains impose multi-day to multi-week exit delays during which you cannot sell or react to a crash.

Inflationary dilution: if rewards are newly minted, your share of the network may not grow as fast as your token count.

Counterparty risk: exchange or pooled staking adds custody, smart-contract, and de-pegging risk for liquid-staking tokens.

Using the Projection Wisely

Real staking APR is not fixed - it drifts with participation rate, validator commission (often 5–10%, not modeled here), and protocol changes. Treat the output as an idealized upper bound under a constant rate, and stress-test it by lowering the APR and assuming the token price stays flat or falls. This is an estimating aid, not financial advice; do your own research and never stake funds you cannot afford to lock up or lose.

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