Web3/Blockchain

Liquidity Pool APR Calculator

Calculate the APR and APY of a liquidity pool from its daily trading fees and total value locked, for your share of the pool.

Last reviewed by the Radiatus Cloud team

Calculate the APR and APY of a liquidity pool from its fees and TVL.

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Calculate liquidity pool yield

Liquidity providers earn a share of the trading fees a pool generates, in proportion to their deposit. This calculator estimates the pool yield from its daily trading fees and total value locked. The daily yield is the fees divided by the total value locked, which annualises to an APR, and compounds to an APY if fees are reinvested daily. A pool earning five thousand dollars a day on ten million locked yields about 18.25 percent APR.

Your personal earnings scale with the size of your deposit relative to the whole pool.

Assessing LP returns

Fee yield is the reward for providing liquidity, but it must be weighed against the risks, chiefly impermanent loss, which occurs when the pooled assets change in relative price. A high fee APR can be eroded or outweighed by impermanent loss in volatile pairs, so the headline yield is only part of the picture. Stable pairs tend to have lower impermanent loss and more predictable fee yields.

Fee income varies with trading volume, so a pool APR fluctuates day to day. Use representative figures and consider the risks. All calculation happens locally in your browser.

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Frequently Asked Questions

How is liquidity pool APR calculated?

Divide the pool daily fees by its total value locked to get the daily yield, then multiply by 365 for the APR.

What is the difference between APR and APY here?

APR is the simple annualised fee yield, while APY assumes you reinvest fees daily so they compound, giving a slightly higher figure.

Does fee yield account for impermanent loss?

No. Fee APR is the reward, but impermanent loss can reduce or outweigh it in volatile pairs, so consider both together.

Why does the APR fluctuate?

Fee income depends on trading volume, which varies, so a pool daily fees and therefore its APR change from day to day.

Privacy & Security

Everything runs in your browser; nothing is uploaded.

Data: None
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How to Use

Enter the pool daily fees, total value locked and your deposit.

Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.