Calculate yield farming returns
DeFi yields can be lucrative but come with risks. This calculator helps you estimate earnings based on APY and lock periods—so you can decide if the lock-up is worth the reward.
Estimated Earnings
APY: %
"Yield farming" got its name in the summer of 2020 — often called "DeFi Summer" — when protocols like Compound began rewarding liquidity providers with governance tokens on top of interest, kicking off a wave of triple-digit advertised APYs.
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What is DeFi Yield? DeFi (Decentralized Finance) yield represents the interest or rewards earned by providing liquidity or staking crypto assets in decentralized protocols. Unlike traditional bank accounts, DeFi yields can range from 2% to over 100% annually, depending on the protocol and market conditions.
How It's Calculated The calculator uses your deposit amount and the Annual Percentage Yield (APY) to estimate earnings over time. Multiply your deposit by the APY and the time period (expressed as a fraction of a year) to get estimated earnings. Note that DeFi protocols often compound rewards daily or weekly.
Lock Periods Explained Many yield farms require you to lock your tokens for a specific period. Longer lock periods typically offer higher yields but reduce your liquidity. The calculator allows you to compare returns across different lock durations.
Risk Factors DeFi yields come with significant risks including smart contract bugs, impermanent loss, rug pulls, and token price volatility. High APY often signals high risk. Always research protocols thoroughly and never invest more than you can afford to lose.
Using Your Results Use the calculated earnings to compare different DeFi opportunities. Factor in gas fees for entering and exiting positions. Remember that advertised APY is often variable and can decrease rapidly as more users deposit into a protocol.
Example: You deposit $10,000 at 15% APY, locked for the "90 days" option (lock factor 12 in the formula). Earnings = $10,000 × 0.15 × (12 ÷ 12) = $1,500. The calculator's lock-period values are scaling factors tuned to the formula, not literal day counts — always check the estimate against the selected option before committing funds.
High DeFi yields typically compensate for higher risk — smart contract bugs, impermanent loss, token price volatility, and rug pulls are all real possibilities that traditional bank deposits don't carry. A very high advertised APY is often a signal of higher risk, not a free lunch.
No — this estimate is based purely on deposit, APY, and lock period. Entering and exiting a position costs gas fees on top of that, which can meaningfully eat into returns, especially for smaller deposits or shorter lock periods.
Not necessarily — advertised APY in DeFi protocols is often variable and can drop as more users deposit into the same pool. Treat the number in this calculator as an estimate based on the rate at the time you enter it, not a guarantee.