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# Staking APY Calculation

“Compound interest is the most powerful force in the universe." - Albert Einstein

**APY**stands for Annual Percentage Yield. This measures the real rate of return on your principal amount by taking into account the effect of compounding interest.

In the StormYield Finance, your $STU tokens represent your principal, and the compound interest is added periodically on

**every Rebase event**(Every 5 minutes).

A = the Final Investment Value, using the simple interest formula: A = P(1 + rt) where P is the Principal amount of money to be invested at an Interest Rate R% per period for t Number of Time Periods. Where r is in decimal form; r=R/100; r and t are in the same units of time.

The accrued amount of an investment is the original principal P plus the accumulated simple interest, I = Prt, therefore we have:

A = P + I = P + (Prt), and finally

**A = P(1 + rt)**- Calculate Total Amount Accrued (Principal + Interest), solve for A
- A = P(1 + rt)

- Calculate Principal Amount, solve for P
- P = A / (1 + rt)

- Calculate rate of interest in decimal, solve for r
- r = (1/t)(A/P - 1)

- Calculate rate of interest in percent
- R = r * 100

- Calculate time, solve for t
- t = (1/r)(A/P - 1)

**P = (Principle + Interest) =**

**$1,000**

**A = (Total Accrued Amount) =**

**$6,692,126.2**

Last modified 9mo ago