Staking Rewards Calculator India: Crypto Staking Income, APY vs APR, and the 30% Tax Impact
- Staking rewards = (Amount staked × APY) ÷ 365 × days staked. A ₹5 lakh ETH stake at 4% APY earns approximately ₹54.80/day or ₹20,000/year — before India's 30% crypto tax.
- APY (Annual Percentage Yield) includes compound interest; APR (Annual Percentage Rate) does not. Platforms often advertise APY to look more attractive — ensure you compare like-for-like.
- India's 30% flat crypto tax applies to staking rewards at their fair market value on the date received — the most punishing crypto tax treatment globally for regular income.
- The real risk in staking is not the staking mechanism — it's the underlying coin's price volatility. A 4% APY on ETH is irrelevant if ETH drops 40% while you're staked.
Use our free Staking Rewards Calculator to compute daily, monthly, and annual staking income, APY vs. APR comparison, compounding effect, and after-tax staking return in INR.
Staking Rewards Formula
Daily Reward = Staked Amount × (APY ÷ 365)
Annual Reward (simple) = Staked Amount × APR
Annual Reward (compounded) = Staked Amount × [(1 + APR/n)^n − 1] Where n = compounding frequency per year
Example — 2 ETH staked at 4% APY (ETH price ₹2,50,000): Staked value: 2 × ₹2,50,000 = ₹5,00,000 Annual reward: ₹5,00,000 × 4% = ₹20,000 Daily reward: ₹20,000 ÷ 365 = ₹54.79/day
After 30% crypto tax: ₹20,000 × 70% = ₹14,000 net annual income Effective after-tax yield: 2.8% on ₹5 lakh
APY vs. APR: The Difference That Matters
APR (Annual Percentage Rate): Simple interest — what you earn without reinvesting rewards.
APY (Annual Percentage Yield): Compound interest — what you earn if you reinvest rewards continuously.
Example — ₹1 lakh at 12% APR, compounded monthly: APY = (1 + 12%/12)^12 − 1 = (1.01)^12 − 1 = 12.68%
On ₹1 lakh: APR basis: ₹12,000/year APY basis (monthly compounding): ₹12,682/year Difference: ₹682 — not huge at this scale, but matters for large stakes.
Always compare APY to APY or APR to APR across platforms — mixing the two is misleading. DeFi platforms often quote APY; centralised exchanges often quote APR.
Current Staking Yields by Coin (2025 Indicative Rates)
| Coin | Platform APY (Indicative) | Lock-up | Risk Level |
|---|---|---|---|
| Ethereum (ETH) | 3.5–4.5% | None (liquid staking) | Low-Medium |
| Solana (SOL) | 6–8% | None (liquid staking) | Medium |
| Cardano (ADA) | 3–5% | None | Medium |
| Polkadot (DOT) | 12–15% | 28-day unbonding | Medium-High |
| Cosmos (ATOM) | 15–20% | 21-day unbonding | Medium-High |
| MATIC/POL | 4–6% | None | Medium |
| Tron (TRX) | 4–7% | 3-day unstaking | Medium |
Staking Income Calculation Table
ETH staked at 4% APY — different amounts:
| ETH Staked | INR Value | Annual Reward (INR) | After 30% Tax | Daily After Tax |
|---|---|---|---|---|
| 0.5 ETH | ₹1,25,000 | ₹5,000 | ₹3,500 | ₹9.59 |
| 1 ETH | ₹2,50,000 | ₹10,000 | ₹7,000 | ₹19.18 |
| 2 ETH | ₹5,00,000 | ₹20,000 | ₹14,000 | ₹38.36 |
| 5 ETH | ₹12,50,000 | ₹50,000 | ₹35,000 | ₹95.89 |
| 10 ETH | ₹25,00,000 | ₹1,00,000 | ₹70,000 | ₹191.78 |
(ETH price assumed ₹2,50,000 per ETH — verify current price)
The Compounding Staking Strategy
Restaking rewards (compounding) significantly increases long-term returns — but each restake is a new taxable event in India.
₹5 lakh ETH, 4% APY, 5 years — with and without compounding:
Without compounding (simple interest): Annual: ₹20,000 × 5 = ₹1,00,000 rewards Final corpus: ₹6,00,000
With monthly compounding (APY applied): Annual: ₹20,374 (year 1) Final corpus after 5 years: ₹6,10,800
Compounding gain over 5 years: ₹10,800 — modest at 4% APY over 5 years.
Compounding matters more at:
- Higher APY (15%+ DeFi yields)
- Longer time horizons (10+ years)
- When tax isn't triggered on each restake (not the case in India currently)
Indian tax consideration: Each time you claim and restake rewards, the claimed amount is taxable at fair market value. This reduces the compounding benefit significantly — you're paying 30% on rewards before they can compound.
Liquid Staking vs. Locked Staking
| Feature | Liquid Staking | Locked Staking |
|---|---|---|
| Access to funds | Anytime (via liquid token) | After lock-up period |
| APY | Slightly lower (3–5% for ETH) | Higher (10–20% for some) |
| Risk | Smart contract risk | Lock-up + project risk |
| Examples | Lido (stETH), Rocket Pool | Polkadot, Cosmos |
Liquid staking (e.g., Lido Finance for ETH): You stake ETH and receive stETH — a liquid token tradeable on DEXs. Your underlying ETH earns staking rewards while stETH can be used in DeFi.
Indian tax on liquid staking: When you receive stETH in exchange for ETH, this may constitute a taxable exchange — the ambiguity in Indian crypto tax law on this specific scenario is not fully clarified.
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Open Staking Rewards Calculator →Disclaimer: This article is for educational purposes only and does not constitute financial, investment, or trading advice. Financial markets involve risk of loss. Past performance does not guarantee future results. Please consult a SEBI-registered investment advisor before making any financial decisions.