Comprehensive Guide
Learn more in our Investing Guide.
How it works
A stablecoin yield calculator projects interest on deposits of dollar-pegged cryptocurrencies — USDC, USDT, DAI and their peers — at a rate you choose. Stablecoin lending promises the attractive combination of crypto rails with dollar-stable principal: no price chart to sweat, just an APY applied to a balance. The calculator applies that APY with monthly compounding, or as simple interest if you leave rewards unclaimed, and reports the projected balance, interest earned, the effective annual rate and the monthly income at the quoted rate. Deliberately, it also shows a second scenario at half the APY. Rates in this corner float violently — a lending market paying 8% this quarter can pay 3% next quarter once demand for borrowing drains away — so a projection pinned to today's headline number systematically flatters multi-year outcomes, and the half-rate line is the honest planning baseline. Understand where the yield originates before chasing its size: lending spreads from real borrowing demand are durable, incentive emissions fade as programs end, and the highest numbers on the board are usually priced in the riskiest currency of all. And unlike a bank deposit, nothing here carries government insurance — platform solvency, smart-contract bugs and depeg events threaten principal itself, not merely the interest.Formula
compounded: balance = deposit x (1 + APY / 12)^(12 x years) | simple: deposit x (1 + APY x years)
Tips
- Plan on the half-rate scenario — multi-year averages in DeFi land far below launch-week headlines.
- Split deposits across venues so no single platform failure takes the whole balance.
- Prefer yields sourced from borrowing demand over incentive emissions that expire when programs end.
- Anchor expectations to the risk-free alternative: if T-bills or a high-yield account pay similar, the extra crypto yield is compensation for real risk.
- Interest is generally taxable as income as it accrues or is received — track it through the year, not retrospectively.
Frequently asked questions
What is stablecoin yield?
Interest earned on deposits of dollar-pegged tokens such as USDC, USDT or DAI, paid by lending markets, savings protocols or centralized platforms. Principal aims to stay dollar-stable while the rate floats — commonly a few percent, spiking higher when borrowing demand or incentive programs surge.
Where does stablecoin yield come from?
Mainly from borrowers paying interest to use deposited capital — traders leveraging positions, market makers financing inventory. Some yields add token incentive emissions, which last only as long as the programs funding them, and some come from fee sharing. The source determines durability.
Is stablecoin yield safe?
Safer than volatile-asset strategies on the price axis only. Deposits carry platform insolvency risk, smart-contract risk, regulatory risk and depeg risk — none of which exist at an insured bank. Treat stablecoin yield as an uninsured, operationally risky version of cash interest, sized accordingly.
How much can I earn on stablecoins?
Rates historically range from around 2% in quiet markets to double digits during demand spikes or incentive campaigns. A persistent double-digit APY signals either temporary emissions or elevated counterparty risk. Model a realistic multi-year average — our half-rate scenario — rather than anchoring to this week's quote.
Are stablecoin rewards taxable?
In most jurisdictions interest on crypto deposits is taxable income when received, valued at the dollar amount credited, with separate rules if the stablecoin itself later trades off its peg. Reporting varies by country; keep transaction-level records and confirm local treatment.