Net yield calculator
Headline APY is a marketing number. This one nets out platform fees, gas, tax and an expected-loss charge for depeg risk, then benchmarks what remains against after-tax T-bills.
Position
Frictions
Waterfall
| Gross yield (8% APY, 12m) | $8,000 |
| Platform fee (0.5% p.a.) | -$500 |
| Gas & transaction costs | -$60 |
| Tax (30% on net income) | -$2,232 |
| Expected depeg loss (2.0% chance × 5%) | -$100 |
| Expected net return | $5,108 |
Method
- Gross yield compounds annually over the horizon; fees accrue linearly on principal.
- Tax applies to income after fees and gas, at your marginal rate; losses are not credited.
- Depeg risk is charged as an expected loss: horizon probability (annual rate compounded over the period) multiplied by the loss realised if you exit during the event.
- The benchmark is the T-bill rate taxed at the same marginal rate.
FAQ
How do I calculate net stablecoin yield after fees and taxes?
Start from the headline APY, subtract protocol or platform fees and amortised gas, then apply your marginal tax rate to the remaining income. Finally deduct an expected-loss haircut for depeg or issuer risk. What is left is the number you can actually compare with a Treasury bill.
How should I price depeg risk?
Treat it as an expected loss: probability of a depeg event over your horizon multiplied by the loss you would realise if you exited during it. A 2% annual probability with a 5% realised loss costs roughly 10bps a year.
Is stablecoin yield taxed as income?
In most jurisdictions lending or staking rewards on stablecoins are taxed as ordinary income when received, not as capital gains. This calculator applies a single marginal rate to net income; check local rules before relying on it.
Why compare against T-bills?
Short-dated Treasury bills are the risk-free dollar rate. Any stablecoin yield below the after-tax T-bill return is paying you nothing for smart-contract, issuer and liquidity risk.