Yield Compounding Simulator
See how compounding frequency dramatically affects your DeFi returns. Compare daily vs weekly vs monthly vs yearly — side by side.
Your Parameters
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How Compound Interest Works
The Formula
A = P × (1 + r/n)^(n×t) where P = principal, r = annual rate, n = compounds per year, t = years.
Why Frequency Matters
More frequent compounding means your earnings generate their own earnings sooner. Daily compounding maximizes this effect.
DeFi vs CeFi
Many DeFi protocols auto-compound in real time (continuous compounding). Reinvesting manually monthly is still far better than never compounding.