About the Yield Farming APY Calculator
What is the Yield Farming APY Calculator?
Yield farming earns fees and token rewards by supplying two tokens to a liquidity pool. The advertised APR ignores impermanent loss – the value you lose when the two tokens' prices move apart.
This calculator adds the farming rewards, subtracts impermanent loss and gas costs, and shows the net return.
How to use the Yield Farming APY Calculator
- Amount Deposited in the Pool (₹) (sample: 1,00,000)
- Farming APR (%) (sample: 25)
- Compounding (sample: Daily)
- Days in the Pool (sample: 180)
- Price Change of One Token Relative to the Other (%) (sample: 30)
- Gas & Transaction Costs (₹) (sample: 1,000)
- Press Calculate Yield Farming Return (results also refresh as you type). The result card shows the Net Return, along with APY from compounding, Farming rewards, Impermanent loss and Impermanent loss in ₹.
Formula used
Impermanent loss = 2√r ÷ (1 + r) − 1
- r = price ratio change of one token relative to the other
- APY = (1 + APR ÷ n)ⁿ − 1
A 2× price divergence causes about 5.7% impermanent loss; 4× about 20%.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Amount Deposited in the Pool (₹) | 1,00,000 |
| Farming APR (%) | 25 |
| Compounding | Daily |
| Days in the Pool | 180 |
| Price Change of One Token Relative to the Other (%) | 30 |
| Gas & Transaction Costs (₹) | 1,000 |
| Result | Value |
|---|---|
| Net Return | ₹11,262 |
| APY from compounding | 28.39% |
| Farming rewards | ₹13,116 |
| Impermanent loss | -0.854% |
| Impermanent loss in ₹ | ₹-854.31 |
| Net return % | 11.26% |
Tips for using the Yield Farming APY Calculator
- Stablecoin pairs have little impermanent loss but lower yields.
- Very high APRs often come from inflationary reward tokens that lose value.