APR and APY are not the same number
Staking platforms quote returns two ways, and the difference is not cosmetic. APR (annual percentage rate) is the flat rate: stake £1,000 at 10% APR with rewards paid out and set aside, and you earn £100 in a year. APY (annual percentage yield) assumes every reward is immediately restaked, so rewards start earning rewards. The same 10% APR compounded daily becomes about 10.52% APY.
Marketing tends to show whichever number looks bigger, which is always the APY once any compounding exists. Tell this calculator which one you were quoted and it does the right maths either way: an APR is compounded at the frequency you pick, while an APY is applied directly because compounding is already inside it. The effective APY row translates between the two, which makes rates quoted differently on rival platforms directly comparable at last.
Worked examples
Why the real outcome will differ
The calculator assumes one thing no network promises: that the rate holds. Staking yields float with how many people are staking, network activity and protocol changes, so a rate quoted today is a snapshot, not a contract. Rewards are also paid in the coin itself. Earn 5% more coins in a year while the price falls 40% and your stake is worth far less in pounds, whatever the APY said.
There are practical frictions too. Many networks impose lock-up or unbonding periods, sometimes weeks, during which you cannot sell. Validators take a commission that may or may not be inside the quoted rate. And on proof-of-stake networks, slashing can destroy part of a stake if the validator you delegated to misbehaves. If you stake through a platform rather than directly, add counterparty risk: UK users have no FSCS protection if a crypto platform fails.
Rewards and UK tax
HMRC generally treats staking rewards as taxable income at their pound value on the day you receive them, even if you never sell, and disposing of the coins later can create a capital gain or loss on top. Records of dates, amounts and values matter. The cryptoassets guidance on gov.uk sets out the current treatment.
Never enter your seed phrase or private keys into any website, including this one. Estimating rewards needs an amount, a rate and a term, and any site asking for more than that is a threat, not a tool.
Crypto is highly volatile and largely unregulated in the UK: be prepared to lose everything you put in. These figures are guidance, not financial advice.
Frequently asked questions
What is the difference between APR and APY?
APR is the flat annual rate with no compounding included, while APY is what you actually earn in a year once rewards start earning rewards of their own. A 10% APR compounded daily works out at about 10.52% APY. Platforms often quote whichever looks better, so check which one you are being shown.
Why does the compounding choice disappear when I pick APY?
Because APY already has compounding baked in. It tells you the total growth over a year whatever the schedule behind it, so adding a compounding frequency on top would count the same effect twice. The calculator simply grows your stake by the APY for each year of the term.
Are staking rewards guaranteed?
No. Advertised rates change constantly with network conditions, rewards are usually paid in the coin itself so their pound value moves with the price, and some networks can slash staked funds for validator misbehaviour. Lock-up and unbonding periods can also stop you exiting when you want to.
Are staking rewards taxed in the UK?
Usually, yes. HMRC generally treats staking rewards as miscellaneous income at their value when received, and selling the rewarded coins later can also trigger Capital Gains Tax. This calculator ignores tax, so check the cryptoassets guidance on gov.uk or speak to an accountant.
Is anything I enter sent anywhere?
No. The calculation runs entirely in your browser and nothing is uploaded or stored. Never enter a seed phrase or private key into any website, including this one. Working out rewards needs a rate and an amount, nothing else.