Crypto Compound Interest Calculator
Visualize the power of compounding on your crypto portfolio over time with daily, monthly, or yearly reinvestments.
Final Amount
Total Interest Earned
What is Compound Interest?
Compound interest is the interest you earn on both your original money and on the interest you keep accumulating. It creates a "snowball effect" that allows your wealth to grow exponentially over time.
Calculation Formula
Compound interest is calculated using the standard mathematical formula, which applies the interest rate over a specified number of compounding periods over time.
A = P (1 + r/n)ntHow Compounding Frequency Affects Returns
The more frequently interest is calculated and added to the balance, the higher the APY (Annual Percentage Yield). Daily compounding will result in slightly higher returns over identical timeframes compared to monthly or yearly compounding.
Frequently Asked Questions
How realistic are high compounding rates in crypto?
While stablecoin lending protocols can offer 5-10% APR consistently, promises of extremely high compounding returns (such as rebasing tokens) often carry significant risks of permanent loss of capital.
Does this calculate inflation?
No, this is nominal growth. To calculate real purchasing power, you would need to subtract your expected inflation rate from your interest rate.
Is compounding automatically applied?
In crypto, compounding can be automatic (auto-compounding vaults) or manual (harvesting and reinvesting yields yourself). This tool assumes flawless, fee-free reinvestment.