The quiet power that needs no leverage
Compound interest is the one edge available to everyone that does not require timing or risk — just patience. This tool separates the compounding bonus from plain simple interest so you can see what time actually buys you. For recurring contributions on top, use the crypto savings plan calculator.
Compounding works, but crypto yields change constantly
The formula is A = P × (1 + r/n)^(n×t). $1,000 at 12% APR compounded monthly for 5 years: 1000 × (1 + 0.01)^60 = $1,816.70. The same 12% compounded daily gives $1,822.03. Compounding frequency matters a little, rate matters a lot.
Where people go wrong with crypto: using current staking or yield farming APYs as a fixed rate. 40% APY this month might be 8% next month as more capital flows in or token prices shift. Compound interest projections with variable rates are just showing you a best-case scenario, not a prediction.
A useful sanity check: the rule of 72. Divide 72 by the annual rate to get years to double. At 12% APR, $1,000 doubles in 6 years. At 6%, 12 years. At 72%, just over a year — but if you're earning 72% staking yield, ask where that yield comes from before trusting the projection.
Related: rule of 72, APY/APR converter, staking vs holding.