Compounding Calculator
| Total deposited | - |
| Interest earned | - |
| Gain from compounding alone | - |
You have just modelled years of compounding at a fixed rate. Real rates are not fixed, and knowing where they sit is the harder part.
Every Thursday: where crypto yield actually is - stablecoins, liquid staking and DeFi lending, with the risk named next to the rate and what changed since last week.
Get it free every ThursdayFree. No trade calls, no allocations, no hype.
What compounding frequency is actually worth
Daily compounding at 4.5% produces an effective 4.60% against 4.50% compounded annually. On $10,000 over a year that is about $10. Worth having, not worth choosing a riskier venue for - and a great deal less than most marketing implies.
Where compounding does matter
Time and contributions, not frequency. The same $10,000 at 4.5% for twenty years roughly doubles; adding $200 a month over the same period matters far more than whether interest lands daily or monthly.
The cost nobody models
In DeFi, compounding is not automatic. Claiming and reinvesting a reward is a transaction, and on mainnet the gas can exceed the reward on a small position. Auto-compounding vaults exist for this reason and charge a fee for it - worth comparing that fee against what you would spend doing it by hand.