> For the complete documentation index, see [llms.txt](https://squiddex-official.gitbook.io/squiddex/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://squiddex-official.gitbook.io/squiddex/education-book/what-is-apr-and-apy.md).

# What is APR & APY

APR vs APY Overview , What’s the difference?

<figure><img src="https://3317304169-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FEBc5wNzf9rp9hJoXDwoD%2Fuploads%2FLn1p7dgCyT0yDT5zNZoC%2FUntitled.png?alt=media&amp;token=7b87f390-07ac-4924-902c-5efb39014e69" alt=""><figcaption></figcaption></figure>

APY and APR in crypto are used to calculate interest on investment, and both significantly affect how much you will earn saving crypto assets or lending crypto assets.

* APY (Annual Percentage Yield)
* APR (Annual Percentage Rate)

**Here is a short overview of the difference and how to calculate your investment growth:**

![](https://cdn-images-1.medium.com/max/1600/1*KsgkwktJbaun0uwlze_0Xw.png)

With compound interest, the amount of return that investors get is higher because the interest is calculated from the principal + the previously earned interest. So, in addition to the interest paid on the principal amount, the reward will continue to increase due to the interest that has accumulated during the time.

## [READ MORE ABOUT OUR DEX](/squiddex/faq/how-does-it-work-on-squiddex.md)