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Formula & Calculator

Vault APY (Yield Aggregator)

Calculates the actual yield an investor receives from a yield aggregator vault after platform fees are deducted from gross returns.

Written by the Vorzep Team

CryptoDeFiYield Farming

Vault APY Calculator Yield Aggregator / Vault

Net APY = Gross – Perf – Mgmt
Net = yield after fees (%)  ·  Gross = underlying yield (%)  ·  Perf = performance fee (%)  ·  Mgmt = management fee (%)
⟹ Solve ⟷ Net, Gross, Perf, Mgmt
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Presets:
Net APY —
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Net: — Gross: — Perf: — Mgmt: —
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Net APY Gauge —
Low (< 3%) Moderate (3–8%) High (> 8%)
Net APY = Gross APY − Performance Fee − Management Fee  ·  All values are in percentage points (%).
Net APY = Gross APY - Performance Fee - Management Fee
Vault APY (Yield Aggregator)

Variables

SymbolQuantityUnit
Net APYInvestor's actual yield%
Gross APYVault's gross yield before fees%
Performance FeeFee on profits generated%
Management FeeAnnual fee on assets under management%

What it means

Yield aggregators (like Yearn) simplify yield farming. They charge fees: a performance fee (percentage of profits) and a management fee. The net APY is what the user receives. Understanding this helps users compare vaults and choose the most cost‑effective option. It is a key consideration in using yield‑optimising protocols.

Worked example

Vault APY (Yield Aggregator) – Two Detailed Examples

Real‑World
Scenario: A yield aggregator vault reports a gross APY of 25%. It charges a 20% performance fee on profits and a 2% management fee. Net APY ≈ 25% - (25% × 20%) - 2% = 25% - 5% - 2% = 18%. The user receives this net yield after fees. They compare vaults based on net APY.
ParameterValue
Gross APY25%
Performance Fee (on profit)20%
Management Fee2%
1Performance Fee = 25% × 20% = 5%
2Net APY = 25% - 5% - 2% = 18%
Result 18% ✓ Net APY
Scenario: A vault with 40% gross APY, 20% performance, and 2% management fee yields net = 40% - 8% - 2% = 30%. This is higher, but the user must consider the risk. They use net APY as the basis for decision‑making.
ParameterValue
Gross40%
Performance20%
Management2%
1Perf = 40% × 20% = 8%
2Net = 40% - 8% - 2% = 30%
Result 30% ✓ High net yield
Insight: Yield aggregator vaults deduct performance and management fees from gross yield. The net APY is what users actually earn. Always compare net APY across vaults.

Common mistakes

  • Vault APY (net): The yield after deducting fees.
  • Gross APY: The yield before fees.
  • Performance fee: A percentage of the profits taken by the protocol.
  • Management fee: A fixed percentage of assets under management.

Applications

Vault APY (yield aggregator) calculates the net APY after deducting performance and management fees. This is the effective yield earned by users of yield‑optimizing vaults. Investors use it to compare different vaults and to assess their net returns. Understanding net APY is crucial for selecting yield‑farming strategies.

  • Comparing yield vaults across different protocols
  • Assessing the impact of fees on net returns
  • Optimising allocation to maximise net yield
  • Monitoring the performance of yield aggregators
  • Educational understanding of yield‑farming fees