Staking APY with compounding and price change
Last reviewed: January 2026
A crypto staking yield calculator projects the rewards you will earn by staking cryptocurrency tokens on a proof-of-stake blockchain. Enter your staked amount, annual percentage yield (APY), and compounding frequency to see your projected earnings over time.
Staking rewards are taxed as ordinary income in the US at the time of receipt (not when you sell). This can create a tax liability even if the underlying token drops in value. APY rates vary widely: Ethereum staking ~3–4%, some proof-of-stake networks 5–15%, DeFi liquidity providing 10–100%+ (with proportionally higher risk). Higher APY usually means higher risk — either through smart contract risk, liquidity risk, or inflationary tokenomics that dilute the value of rewards. Always consider the token's inflation rate when evaluating "real" yield.
| Network | Annual Yield | Lock-Up Period | Min Stake |
|---|---|---|---|
| Ethereum | 3–5% | Variable (liquid staking available) | 32 ETH (solo) / any (pool) |
| Solana | 5–7% | 2-3 days unstaking | No minimum |
| Cardano | 3–5% | None (liquid delegation) | No minimum |
| Polkadot | 10–14% | 28 days unbonding | Varies |
Staking involves locking cryptocurrency in a proof-of-stake (PoS) blockchain network to help validate transactions and secure the network, earning rewards in return. Unlike proof-of-work mining, which requires expensive hardware and electricity, staking requires only holding and delegating tokens. When you stake Ethereum, for example, your ETH is locked in the network's validator system, and you receive a share of transaction fees and newly minted tokens as compensation. The yield varies based on the total amount staked network-wide (higher total stake dilutes rewards), network activity (more transactions generate more fees), and protocol-specific parameters. Staking is functionally similar to earning interest on a savings account — your principal is committed for a period, and you receive periodic income — but with significantly higher risk due to crypto price volatility and protocol-specific risks.
| Network | Estimated APY | Minimum Stake | Lock-Up Period | Risk Level |
|---|---|---|---|---|
| Ethereum (ETH) | 3.5–4.5% | 32 ETH (solo) / any (pool) | Variable (exit queue) | Low (blue-chip) |
| Solana (SOL) | 6.5–7.5% | Any amount | ~2-3 days to unstake | Moderate |
| Cardano (ADA) | 3.0–4.0% | Any amount | None (liquid) | Moderate |
| Polkadot (DOT) | 10–14% | Varies by era | 28 days to unbond | Moderate-high |
| Cosmos (ATOM) | 15–20% | Any amount | 21 days to unbond | High |
The most significant risk in staking is not the yield but the underlying asset's price volatility. A 5% annual staking yield is meaningless if the token loses 50% of its value — your total return is deeply negative. This is why staking should be viewed as supplemental yield on assets you would hold regardless, not as a reason to buy and hold a particular token. Slashing risk — where a validator misbehaves and the network destroys a portion of staked tokens as punishment — exists on most PoS networks but is extremely rare for reputable validators. Validator selection matters: choose validators with high uptime (99.5%+), reasonable commission rates (5-10%), and established track records. Lock-up periods create liquidity risk: if you need to sell during a market crash but your tokens are locked for 21 to 28 days, you cannot exit until the unbonding period completes.
Liquid staking protocols (Lido, Rocket Pool for Ethereum) partially solve the liquidity problem by issuing derivative tokens (stETH, rETH) that represent staked positions and can be traded on secondary markets. However, liquid staking tokens can trade at a discount to the underlying asset during periods of market stress, as seen when stETH briefly traded 5% below ETH value in 2022. The smart contract risk inherent in liquid staking protocols adds another layer of complexity — a bug or exploit in the protocol could result in partial or total loss of staked funds. For broader crypto investment analysis, use our Crypto Profit Calculator.
Most staking protocols do not automatically compound rewards — they accumulate separately and must be manually restaked to earn compound returns. On networks with low transaction fees (Solana, Cardano), restaking daily or weekly is cost-effective. On networks with higher fees (Ethereum mainnet), less frequent compounding makes sense because gas costs can consume the reward. The difference between simple and compound staking returns is meaningful over long periods: a $10,000 stake at 5% simple yield earns $500 annually. With daily compounding, the same stake earns $512.67 — a modest improvement in one year. Over 5 years, the gap widens: simple yield produces $12,500 while compound growth produces $12,840. At higher yields typical of some protocols (15-20%), compounding becomes dramatically more impactful. Autocompounding protocols and smart contracts handle this automatically for a small fee, and many staking dashboards display the APY (compound) alongside the APR (simple) to show the real expected return. For compound growth modeling, see our Compound Interest Calculator.
The IRS considers staking rewards as ordinary income, taxable at the fair market value when received. If you receive 0.5 ETH as staking rewards when ETH is worth $3,000, you owe income tax on $1,500 at your marginal rate. When you later sell that ETH, any appreciation above the $3,000 basis is a capital gain. This creates a cash flow challenge: you owe taxes on rewards that may be locked and illiquid, and the value of those rewards can decline before you have the opportunity to sell and pay the tax. Careful record-keeping is essential — tracking the fair market value at the time of each reward receipt establishes your cost basis for future capital gains calculations. Some staking operations — particularly running a solo Ethereum validator — may qualify as a business activity, allowing deduction of related expenses (hardware, electricity, internet). Consult a tax professional familiar with crypto taxation for your specific situation. For tax planning tools, see our Crypto Tax Calculator.
Staking is one of several ways to earn passive income on crypto holdings, and understanding the alternatives helps contextualize staking yields and risks. DeFi lending platforms (Aave, Compound) allow depositing crypto assets to earn interest from borrowers — yields range from 1% to 10% depending on the asset and market demand, with the added risk of smart contract vulnerabilities and borrower defaults. Liquidity provision on decentralized exchanges (Uniswap, Curve) earns trading fees and sometimes token incentives, but carries impermanent loss risk — the value of your position can underperform simply holding the underlying assets if prices diverge significantly. Centralized exchanges offer yield programs (Coinbase rewards, Kraken staking) that simplify the process but introduce counterparty risk — as demonstrated by the collapse of platforms like Celsius, BlockFi, and FTX, where customer assets were lost despite promised yields. Native staking through self-custody (running your own validator or delegating through your own wallet) eliminates counterparty risk and is generally the safest approach for long-term holders who want yield on their existing positions. Use our Dollar-Cost Averaging Calculator to model how staking rewards combined with regular purchases compound over time.
Crypto staking yields are not risk-free returns — several factors can erode or eliminate expected gains. Slashing risk occurs when a validator node behaves maliciously or experiences extended downtime, resulting in a penalty that destroys a portion of staked assets (typically 0.5-100% depending on the severity and the protocol). Lock-up periods prevent unstaking during market downturns — Ethereum's unstaking queue can take days to weeks during high-demand periods, and some protocols enforce fixed lock-up periods of 7-28 days. Validator selection matters because delegating to an underperforming or malicious validator exposes your stake to their slashing penalties. Inflation dilution occurs when staking rewards come from token inflation rather than transaction fees — if the network inflates at 7% annually and staking yields 7%, the real return is approximately zero because all token holders are diluted equally. Smart contract risk in DeFi staking protocols means a bug or exploit could result in total loss of staked assets.
→ Run multiple scenarios. Try different inputs to see how changes affect the outcome. Small differences in rates, terms, or amounts can have a large impact over time.
→ Use conservative estimates. When projecting future returns or growth, err on the low side. Optimistic assumptions lead to plans that fall short.
→ Compare before committing. Use the results alongside other financial calculators on this site to see the full picture before making a financial decision.
→ Bookmark for periodic check-ins. Financial situations change — revisit this calculator quarterly or when your circumstances shift to keep your plan on track.
See also: Crypto DCA Calculator · Compound Interest Calculator · Crypto Tax Calculator