Staking on Polygon allows token holders to support network security and earn rewards. When comparing options or estimating potential earnings, two metrics often appear: APR and APY. They sound similar but represent different concepts. Understanding how each works, and how they apply to polygon staking rewards, helps you estimate outcomes more accurately and choose a strategy that aligns with your goals.
APR stands for annual percentage rate. It reflects the simple annualized rate of rewards without factoring in compounding. If a validator advertises a 6% APR, it means that over one year, you’d receive rewards corresponding to 6% of your staked amount, assuming conditions remain constant and you claim or restake on your own schedule.
Key points about APR:
On Polygon, validators typically display an APR that already accounts for their commission. However, commissions and network parameters can change, so APR is best seen as a snapshot rather than a fixed promise.
APY stands for annual percentage yield and includes compounding. It answers the question: if you regularly restake your rewards so they start earning more rewards, what effective annual rate do you achieve? APY will always be equal to or higher than APR when compounding is present.

APY depends on:
If you stake Polygon and manually claim and restake rewards at a consistent pace, your effective APY will increase relative to a simple APR, assuming fees and gas costs don’t offset gains.
The difference comes down to compounding. APR treats rewards as separate from the principal. APY assumes rewards are added to the principal, boosting the base on which future rewards are calculated.
Since validator performance and network conditions vary, actual results may deviate from estimates. Rewards may fluctuate based on the total amount staked across the network, validator commission changes, and any governance updates.
Compounding on staking polygon Polygon can be manual or facilitated by third-party tools:
For a basic polygon staking guide approach, assess whether the added complexity and fees from frequent compounding produce a net benefit relative to simply keeping rewards unclaimed or claiming less often.
To estimate potential polygon staking rewards, consider:
A simple approximation:
When you stake Polygon, your validator choice affects your realized rate more than the APR label alone. Look at:
APR figures can change as network participation shifts. More total stake typically reduces per-staker rewards, while less total stake can increase them. Treat published rates as estimates.
Staking polygon involves trade-offs that influence realized yields:
Balancing frequency of compounding with transaction fees and operational simplicity often yields better net results than maximizing theoretical APY at all costs.
If you plan to stake Polygon and compare APR vs. APY directly:
For many users, a moderate compounding schedule—such as monthly or quarterly—offers a reasonable balance between higher effective yield and manageable fees. The specific cadence depends on your stake size, gas environment, and preference for hands-on management.
By understanding APR and APY, and how compounding, validator performance, and fees interact, you can approach polygon staking rewards with clearer expectations and a structure that fits your needs.