Crypto Lending Interest Calculator
Calculate the interest you will earn by lending out your cryptocurrency over a set time period at a given annual rate. Perfect for DeFi lenders and CeFi platform users who want to forecast passive income before committing funds.
About this calculator
Crypto lending interest is typically expressed as an annual percentage rate (APR) but applied pro-rata over the actual lending period. The formula used here is: Interest = Lending Amount × (Annual Interest Rate ÷ 100) × (Lending Period ÷ 365). Dividing the rate by 100 converts the percentage to a decimal, and dividing the lending period by 365 scales the annual rate down to the exact fraction of the year you are lending. For example, lending $10,000 at 8% APR for 90 days yields: $10,000 × 0.08 × (90 ÷ 365) = $197.26. Note that this formula calculates simple interest only; platforms that compound interest daily or monthly will produce higher returns than this figure shows.
How to use
Suppose you lend $5,000 worth of USDC on a DeFi platform offering 12% APR for a 180-day period. Enter $5,000 as the Lending Amount, 12 as the Annual Interest Rate, and 180 as the Lending Period. The calculator computes: Interest = $5,000 × (12 ÷ 100) × (180 ÷ 365) = $5,000 × 0.12 × 0.4932 = $295.89. After 180 days you will have earned approximately $295.89 in interest. This lets you compare different platforms and rates before deciding where to allocate your funds.
Frequently asked questions
What is the difference between APR and APY in crypto lending?
APR (Annual Percentage Rate) measures simple interest without compounding, while APY (Annual Percentage Yield) accounts for the effect of compounding over the year. If a platform compounds your interest daily, the effective APY will be higher than the stated APR. For example, a 12% APR compounded daily results in an APY of approximately 12.75%. When comparing crypto lending platforms, always check whether the advertised rate is APR or APY to make a fair comparison.
How safe is it to lend cryptocurrency on DeFi or CeFi platforms?
Crypto lending carries significant risks that differ by platform type. CeFi platforms (like centralized lending services) expose you to counterparty risk — the platform itself could become insolvent, as seen with several high-profile collapses. DeFi protocols carry smart contract risk, where bugs or exploits can result in total loss of funds. Collateralization ratios, platform audits, insurance funds, and the track record of the protocol are all factors to evaluate before lending. Never lend more than you can afford to lose.
When should I use crypto lending instead of staking to earn passive income?
Lending is preferable when you hold stablecoins or assets without a native staking mechanism, as it converts otherwise idle holdings into yield-generating positions. Staking typically requires locking a specific proof-of-stake token to validate transactions and earn rewards, while lending accepts a broader range of assets. If your primary goal is yield on stablecoins to avoid crypto price volatility, lending is usually the more appropriate tool. For native PoS tokens like ETH or SOL, staking often offers comparable or better returns with fewer counterparty risks.