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Finance & Economics / Blockchain & Crypto

DeFi Yield APR to APY & Gas Break-Even Calculator

Educational mathematical illustration only. This does not model impermanent loss, changing APRs, or protocol risk.

Convert DeFi APRs into APY, see your net yield after gas fees, and find the minimum deposit size that makes a vault or farm worthwhile.

Formula

APY=(1+APR/n)n−1\text{APY} = (1 + \text{APR}/\text{n})^{\text{n}} - 1
Final balance=deposit×(1+APR/n)n×days/365\text{Final balance} = \text{deposit} \times (1 + \text{APR}/\text{n})^{\text{n} \times \text{days}/365}
Net yield=final balance−deposit−gas\text{Net yield} = \text{final balance} - \text{deposit} - \text{gas}
Break-even deposit=gas÷APY\text{Break-even deposit} = \text{gas} \div \text{APY}

Worked Example

APR20%
Compounds per year365
Deposit$5,000
Duration365 days
Gas costs$40
Result
APY22.13%
Final balance$6,106.68
Gross yield$1,106.68
Net after gas$1,066.68
Break-even deposit$180.72

Compounding 20% APR daily gives (1 + 0.20/365)^365 − 1 = 22.13% APY, so $5,000 grows to $6,106.68 in a year. $40 of gas leaves $1,066.68. Below a deposit of about $181 the year's yield wouldn't cover the gas.

Frequently Asked Questions

Does this account for impermanent loss or variable APRs?

No. This is a mathematical yield model using fixed APR and compounding assumptions only.

How should I estimate gas costs accurately?

Use transaction history or protocol-specific estimates for entry, compounding, and exit operations under your expected chain conditions.

Can I use this for lending protocols or only LP farms?

You can use it for either when APR, compounding frequency, and gas assumptions match your strategy.

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