# How to calculate the daily interest rate

You first take the** Annual percentage rate (APR)* **on your deposit and divide it by 365 to determine the amount of interest that accrues on a daily basis. Say you own 10,000 USDT tokens with 20% annual interest. You'd divide that rate by 365 (0.2 รท 365) to arrive at a daily interest rate of 0.0005479452055 which is approximately 5.5 USDT per day.

**An annual percentage rate (APR) is the yearly rate earned by an investment. APR shouldn't be confused with APY (annual percentage yield), a calculation that takes the compounding of interest into account. *

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