# What is APR & APY

<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&#x26;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](https://squiddex-official.gitbook.io/squiddex/faq/how-does-it-work-on-squiddex)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://squiddex-official.gitbook.io/squiddex/education-book/what-is-apr-and-apy.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.