Crypto Lending Interest Rate Comparison

Compare crypto “earn” products on a consistent basis

Crypto lending and “earn” products often advertise yields that look comparable at a glance, but the details differ: one platform quotes APR, another quotes APY, one compounds daily, another compounds monthly, and some take a performance fee from the interest you earn. This calculator standardizes those mechanics so you can answer a practical question: If I deposit a given amount and hold for a set number of months, which product leaves me with the higher ending balance after compounding and fees?

The output is expressed in token units (the same units as your deposit). That makes it useful for comparing offers even when you do not want to assume a fiat price. It is also intentionally simple: it focuses on rate mechanics and fee drag, and it does not attempt to model counterparty risk, token price risk, taxes, or promotional tiers.

How to use the calculator (quick steps)

1. Deposit amount: enter how many tokens you plan to deposit (for example, 1.5 BTC or 10,000 USDC).
2. Holding period (months): enter how long you expect to keep funds in the product.
3. Product A and Product B: enter each product’s APR (%), compounding frequency (compounds per year), and any fee taken from interest.
4. Select Compare Yields to see ending balance and net interest earned for each product.
5. Use Download CSV to export the comparison for recordkeeping or spreadsheet analysis.

Inputs explained (what each field means)

• Deposit amount (in token units): your starting principal P. The calculator assumes you deposit once at the start and do not add or withdraw during the holding period.
• Holding period (months): how long you keep funds in the product. The calculator converts months to years as t = months / 12.
• APR (%): the nominal annual percentage rate. APR does not include compounding by itself; compounding is applied using the “compounds per year” input.
• Compounds per year: how often interest is reinvested. Examples: 12 (monthly), 52 (weekly), 365 (daily). More frequent compounding slightly increases the effective yield for the same APR.
• Fee on interest (%): a platform fee taken from the interest you earn (not from principal). Example: a 15% fee means you keep 85% of the interest generated by the compounding formula.

Formulas used (APR, compounding, and fee drag)

The calculator uses a standard compound-interest future value model based on APR and compounding frequency. For a principal P, APR as a decimal r, compounds per year n, and holding period in years t:

Gross interest is FutureValue − P. If the platform charges a fee f (as a decimal) on interest, net interest is:

Ending balance is then P + NetInterest. This matches the page’s implementation: it computes the compounded future value, then applies the fee to the interest portion only.

APR vs APY (and how to enter APY if that’s what you have)

Platforms often market APY because it looks higher than APR when compounding is frequent. APY is the effective annual growth rate after compounding, while APR is the nominal annual rate before compounding. This calculator’s inputs are labeled APR (%), but you can still use it when you only have APY by converting APY to an APR-equivalent for a chosen compounding frequency.

If a platform quotes APR and compounds n times per year, the effective APY is:

If you have APY and want an APR-equivalent for the same n, rearrange the relationship:

Practical tip: if you do not know the compounding schedule behind an advertised APY, you can still compare offers by using the APY as a rough stand-in for APR and setting a high compounding frequency (for example, 365). That is an approximation, but it often gets you close enough to see whether fees or rate differences dominate.

Worked example (realistic, step-by-step)

Suppose you deposit 1.5 tokens and plan to hold for 9 months.

• Product A: 4.5% APR, compounded monthly (12/year), 0% fee on interest.
• Product B: 4.2% APR, compounded daily (365/year), 15% fee on interest.

Even though Product B compounds more frequently, the fee reduces the interest you keep. Run these inputs in the form to see which ending balance is higher. Then try sensitivity checks: keep everything the same and change only the fee (e.g., 0%, 10%, 20%) to see how quickly fees dominate small rate differences.

Another quick check is to compare the fee drag in token terms. If gross interest is about 0.05 tokens and the fee is 15%, you give up about 0.0075 tokens to fees. When two products are close, that small difference can flip the winner.

Scenario planning: compare more than one holding period

Holding period matters because compounding and fees accumulate over time. If you are unsure whether you will hold for 3 months or 12 months, run both scenarios. A product with a slightly higher APR but a high fee might look fine over a short period, but lose over a longer period as the fee repeatedly clips your interest.

If a product has a lockup longer than your intended holding period, treat that as a separate constraint. This calculator assumes you can hold for exactly the number of months you enter; it does not apply penalties for early withdrawal or forced lockups.

How to interpret results

The results table shows two key outputs for each product:

• Net Interest Earned: interest after the fee is applied (in token units).
• Ending Balance: your principal plus net interest (in token units).

If the winner changes when you slightly adjust APR, compounding frequency, or fee, that is a sign the offers are close and the decision may depend more on non-math factors (custody, lockups, withdrawal terms, and risk). In that case, consider exporting to CSV and keeping a small comparison log so you can explain your choice later.

Common pitfalls when comparing crypto lending rates

Many “wrong” comparisons come from mixing definitions rather than from bad arithmetic. Use this checklist to avoid the most common mistakes:

• APR vs APY confusion: do not compare an APR headline to an APY headline without converting or modeling compounding consistently.
• Fee basis mismatch: some platforms charge fees on interest, others charge a spread (lower rate), and some charge withdrawal fees. This calculator models only a fee on interest.
• Tiered rates: rates may change above certain balances (for example, “first 1 BTC at 5%, remainder at 2%”). This calculator assumes a single rate for the whole deposit.
• Minimum holding or lockup: if you cannot withdraw when you want, the effective value of the yield changes. Model the math here, but evaluate liquidity separately.
• Interest payment token: if interest is paid in a different token, your realized value depends on price changes. This calculator stays in token units and does not model price risk.
• Rate changes: variable rates can reprice daily. If you expect repricing, run low/base/high APR scenarios to see the range of outcomes.

What this calculator does not model (important)

Rate math is only one part of a crypto lending decision. Consider these separately:

• Platform and counterparty risk: insolvency, rehypothecation, freezes, and legal/jurisdictional risk can dominate yield.
• Variable rates: many products can reprice frequently; a headline APR may not persist for your full holding period.
• Token price risk: interest paid in a volatile token can change in fiat value dramatically.
• Taxes: interest may be taxable when received; this tool is pre-tax and in token units.
• Lockups and withdrawal gates: reduced liquidity has an opportunity cost that is not captured by APR/APY.

Limitations and assumptions

This calculator is a deterministic comparison of two rate schedules. It assumes:

• The stated APR and compounding frequency remain constant over the holding period.
• Interest is reinvested at the same rate (compounded) rather than withdrawn.
• Fees are applied as a percentage of interest earned, not principal.
• No additional deposits, withdrawals, minimum-balance tiers, or promotional rate changes occur.
• All results are shown in token units and rounded for display; small rounding differences are normal.

Use the results as a comparison tool, not as a guarantee. If you need a more complete model (tiered rates, changing APR, lockup penalties, or tax impacts), export to CSV and extend the analysis in a spreadsheet.

Decision guide: choosing between two close offers

When the ending balances are close, the “best” choice is often determined by constraints and risk tolerance rather than by a few basis points of yield. Consider documenting answers to the questions below alongside your CSV export:

• Liquidity: can you withdraw instantly, or is there a cooldown/queue? Does interest continue during withdrawal?
• Transparency: do you understand how yield is generated (lending, market making, staking, DeFi strategies)?
• Custody and legal terms: who holds the assets, what are the terms of service, and what jurisdiction applies?
• Concentration: are you comfortable with the platform’s size, reserves, and operational history?
• Operational friction: are there caps, whitelists, minimums, or manual steps that could prevent you from maintaining the position?

This page’s calculator helps with the numeric comparison. The checklist helps ensure the numeric winner is also a sensible real-world choice.