Looking for a better calculator for APY

I have been burned by APY calculators a whole bunch of times. They just don’t seem to ever be close to accurate to what I actually get. Came across the below tweet a few minutes ago and it seems it’s a bigger issue. What’s the issue? I’ve been trying to figure out how to accurately calculate APY. Any recommendations?


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4 thoughts on “Looking for a better calculator for APY”

  1. Two things are happening here:

    1. conditions change. This is probably the most common, i.e. There are 1000 tokens for staking per year. If 1 person stakes 1 token they get 100000% APY. But if 1000 other people join now its just 100%

    2. Assumptions about compounding, for example Lets say the annual interest ***rate*** is 5%. If we assume monthly compounding this means Annual ***Yield*** is (1+.05/12)^12 – 1 = 5.116% APY

    If we assume daily compounding the formula is (1+.05/365)^365 – 1= 5.126% APY

    If we assume per block compounding the formula is (1 + .05/2628000)^2628000 – 1= 5.131% APY

    These are not that much different but when the APR is 100% now we get:

    * APY monthly compounding: 161.202%
    – APY daily compounding: 171:456%
    – APY per block compounding: 172.035%

    A lot of times compounding happens each time someone interacts with the contract so it is not deterministic


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