What this calculates
Real yield removes the illusion of high-APY farming. The formula:
Real Yield % = ((1 + APY) / (1 + Inflation)) − 1
Then annual gas/fee costs are subtracted as a % of your position. A $5,000 position with 20% APY, 3.5% inflation, and $200 in gas earns ~$740 real profit — not the $1,000 the headline APY suggests.
Related: APY ↔ APR Converter · Funding Rate Pain · PnL Calculator
Frequently asked questions
What is real yield in DeFi?
Real yield is what you actually earn after subtracting inflation and costs. A 20% APY sounds great until you subtract 4% inflation and $500/year in gas fees — the real return on a $5,000 position is closer to 6%.
What is a good real yield in DeFi?
Any positive real yield beats holding cash. Sustainable DeFi real yields of 5–15% are exceptional. Many high-APY farms collapse to near-zero once token dilution and fees are counted — always stress-test with this calculator.
Why does gas cost matter so much?
On small positions gas is disproportionate. $200/year gas on a $1,000 position = 20% headwind before you've earned anything. On a $50,000 position the same $200 is only 0.4%. Scale matters more in DeFi than almost anywhere else.