APR vs APY in Crypto Staking Explained

BullCalc Team · October 11, 2026 · 2 min read

Staking pages and crypto savings products love big percentages. Some show APR, some show APY, and the difference is not always explained. Here is what each means and why it matters.

APR: the simple rate

APR (annual percentage rate) is the yearly reward without compounding. At 10% APR, 1,000 coins earn 100 coins over a year if rewards are not restaked.

APY: the rate with compounding

APY (annual percentage yield) includes the effect of adding rewards back to the stake so they earn rewards too. The more often this happens, the higher the APY.

At low rates the difference is small. At high rates it grows quickly, which is why some platforms prefer to show the bigger APY number.

Compare like with like

When comparing offers, convert everything to the same measure. A 9.6% APR with daily compounding and a 10% APY are almost the same. The staking calculator converts APR to APY and shows rewards for any period.

What the percentage does not tell you

• Price risk: rewards are paid in the coin. If the coin falls 30%, a 10% yield does not save you.
• Lock-ups: some staking has unbonding periods of days or weeks when you cannot sell.
• Inflation: part of many staking rewards is newly created tokens, which can dilute the price.
• Platform risk: if the platform holding your coins fails, rewards do not matter.

Questions to ask before staking

1. Is the rate APR or APY, and how often is it compounded?
2. How long are funds locked, and how long does unstaking take?
3. Where do the rewards come from?
4. Who holds the coins while they are staked?

This article is for education only and is not financial advice.