Crypto Lending Earnings Calculator
Calculate the interest you earn by lending cryptocurrency on a DeFi or CeFi platform with compound interest. Use it to compare platforms with different rates and compounding frequencies.
Last updated: May 2026
About this calculator
Crypto lending platforms pay interest on deposited assets, compounded at intervals ranging from daily to annually. The formula for compound interest earnings is: Earnings = lendingAmount × (1 + r/n)^(n×t) − lendingAmount, where r is the annual interest rate as a decimal (e.g. 0.06 for 6%), n is the number of compounding periods per year, and t is the lending term in years. The select options in this calculator supply r already as a decimal (0.04 = 4%, 0.06 = 6%, etc.), so the formula does not divide by 100. The lending term is entered in months and the formula converts to years by dividing by 12. A higher compounding frequency slightly increases total earnings compared to annual compounding because interest is reinvested more often. Keep in mind that advertised APR and APY differ — APY already accounts for compounding, while APR does not. Always confirm which rate a platform quotes before entering it.
How to use
You lend $5,000 at 6% annual interest (the BTC/ETH option, decimal value 0.06), compounding monthly (n = 12), for 6 months (lendingTerm = 6, converted to t = 6/12 = 0.5 years inside the formula). Earnings = $5,000 × (1 + 0.06/12)^(12 × 0.5) − $5,000 = $5,000 × (1.005)^6 − $5,000 = $5,000 × 1.030378 − $5,000 = $5,151.89 − $5,000 = $151.89. In six months you earn $151.89 in interest. Increasing compounding to daily (n = 365) for the same six months yields approximately $152.26 — a small extra $0.37 from more frequent reinvestment, but the gap widens at higher rates and longer terms. At the 15% rate for one full year (lendingTerm = 12) with daily compounding, you would earn about $809 on the same $5,000 principal.
Frequently asked questions
How does compounding frequency affect crypto lending earnings?
Compounding frequency determines how often earned interest is added back to your principal and begins earning its own interest. Daily compounding yields slightly more than monthly, which yields more than annual, because interest is reinvested sooner. The difference is small at low interest rates but becomes meaningful at the high APRs (10–20%+) common in crypto lending. For example, $10,000 at 15% for one year earns $15,000 with annual compounding but approximately $16,183 with daily compounding. Always check whether a platform's quoted rate is APR or APY, as APY already factors in the compounding effect.
What are the risks of lending cryptocurrency on DeFi or CeFi platforms?
Crypto lending carries several risks not present in traditional savings accounts. CeFi platforms (like those that collapsed in 2022) can become insolvent, freezing or losing deposited funds with no deposit insurance protection. DeFi lending protocols face smart contract vulnerabilities, oracle manipulation, and liquidation cascades that can result in partial or total loss of principal. Interest rates are also variable and can drop sharply when market demand shifts. Counterparty risk, regulatory risk, and the underlying volatility of the crypto asset itself all compound the risk profile. Only lend amounts you can afford to lose entirely.
What is the difference between APR and APY in crypto lending platforms?
APR (Annual Percentage Rate) is the simple annual interest rate without accounting for compounding within the year. APY (Annual Percentage Yield) incorporates the effect of compounding and represents the true annual return if interest is reinvested throughout the year. A platform advertising 12% APR with monthly compounding actually delivers an APY of about 12.68%. When comparing platforms, always convert both rates to APY so you are making an apples-to-apples comparison. This calculator uses APR as the input (interestRate), so enter the rate the platform shows before compounding is applied.