How is PancakeSwap APR calculated

The formula for calculating APR is A = (P(1+rt)) , where A = total accumulated amount, P = principal amount, r = interest rate, and t = time period.

The true APR consists of the yield earned in $CAKE rewards + fees earned from being an LP . The fee APR is based on the average LP fees over the last 7 days.

Calculating LP Reward APR

To understand APY, you must first understand its simpler “yield brother”, APR or annual percentage rate. Although similar, APR and APY can be drastically different given enough time. APR is calculated as the percentage of your initial deposit you will receive back after 365 days .