Yield farming can generate 5%–200%+ APY — but higher APY means higher impermanent loss risk.
What this calculator does
Compounding daily vs annually can add 20–30% to returns on 50%+ APY protocols.
When to use this calculator
Reach for this calculator when evaluating whether a crypto position meets its target return after accounting for real-world costs. Gross profit and net profit after fees can differ significantly, particularly for active traders.
Common mistakes
A common mistake is confusing gross return with annualised return. A 60% gain sounds impressive until you factor in it took 4 years — which is an annualised CAGR of about 12.9%, useful context for comparing against other investments.
Real-world scenarios
A trader holds a position that has doubled from the entry price and wants to know the exact net proceeds after the platform's 0.15% trading fee and an estimated 20% capital gains tax rate. The calculator returns the exact take-home figure — not the gross gain that the exchange UI displays.