Crypto Lending Calculator
Calculate the simple interest income you earn by lending cryptocurrency on a platform for a set number of days. Use it to compare offers across platforms before committing your funds.
About this calculator
Crypto lending platforms let you earn interest by loaning your digital assets to borrowers. The income is calculated using simple interest prorated for the lending duration: Interest Earned = lendAmount × (interestRate / 100) × (duration / 365). Here, lendAmount is the dollar value of assets lent, interestRate is the annual percentage yield (APY) offered by the platform, and duration is how many days you lend for. Dividing duration by 365 converts the annual rate into the exact fraction of the year your funds are deployed. The result is the gross interest income in dollars before any platform fees or taxes. This formula assumes simple interest; some platforms compound interest daily, which would produce slightly higher returns for the same nominal rate.
How to use
Suppose you lend $10,000 worth of USDC at an annual interest rate of 8% for 90 days. Enter lendAmount = $10,000, interestRate = 8, and duration = 90. The calculator computes: Interest = $10,000 × (8 / 100) × (90 / 365) = $10,000 × 0.08 × 0.2466 ≈ $197.26. Over 90 days you would earn approximately $197.26 in interest on your $10,000 position. Annualised, this confirms the 8% rate: $197.26 × (365/90) ≈ $800, or 8% of $10,000.
Frequently asked questions
How does crypto lending interest compare to traditional bank savings rates?
Crypto lending platforms often advertise annual yields of 4–15% or higher, far above the 0.5–5% typical of traditional bank savings accounts as of recent years. However, this higher yield comes with substantially greater risk: lending platforms can be hacked, go insolvent, or freeze withdrawals as seen with several high-profile collapses. Traditional bank deposits up to regulatory limits are government-insured; crypto lending deposits carry no such protection. Always weigh the yield premium against the counterparty and liquidity risks before committing funds.
What is the difference between APY and APR in crypto lending platforms?
APR (Annual Percentage Rate) is the simple annual interest rate without compounding, while APY (Annual Percentage Yield) accounts for the effect of compounding over the year. If a platform compounds your interest daily, the APY will be slightly higher than the stated APR. For example, an APR of 10% compounded daily yields an APY of approximately 10.52%. This calculator uses simple interest (APR logic), so if your platform compounds interest, your actual earnings will be marginally higher than shown. Always check whether a platform quotes APR or APY to make accurate comparisons.
What risks should I consider before using a crypto lending platform?
The primary risks are counterparty risk (the platform becoming insolvent or fraudulent), smart contract risk (bugs in the underlying code that could drain funds), liquidity risk (platforms freezing withdrawals during market stress), and regulatory risk (government action against the platform or the asset class). Additionally, if you lend volatile assets rather than stablecoins, the dollar value of your principal can fall even as you earn interest in coin terms. Diversifying across multiple reputable platforms and avoiding locking funds for long durations can help manage, but not eliminate, these risks.