# Stakepool calculator - is this right?

I had a look at the calculator on the Cardano site at Official Cardano calculator and when I put in the following numbers it doesn’t appear to make sense. For example - I pledge 100,000 ADA and I get 1,000,000 in stake from delegators
(with 20 ADA per day operating costs) and it says there are 4,751 ADA in rewards at a yield of 4.7517%. Am I missing something here or am I completely stupid but doesn’t that give a yield of 0.47517%? - 4751/1000000 x 100 is 0.475?

Hello Graham,

I believe the calculated yield is correct. You as a SPO are an investor and your pledge is your investment. So in that case making 4,751ADA on your 100kADA investment is a 4.7517% ROI. Hope this clears things up a bit for You. Cheers.

m.

Thanks for the reply. Maybe I am not understanding this right then. The 4,751 ADA would be paid to the those that have the stake. In order for the pool owner to get all of this they would need to be the ones staking the 1,000,000 ADA (which would include the 100,000 ADA pledge) in which case it would only be 0.4751% return on the investment. If the pool owner does not own any of the 1,000,000 stake then I would imaging they only get the pool fees (plus around 10% of the rewards) which are not going to be very much? - look I am sorry if I am misunderstanding this but I just can’t see where 4.751% yield comes from unless you we are saying that the stake pool owner gets 4,751 ADA for only pledging 100,000 ADA and there is a separate reward bucket for the amount staked?

In my understanding the calculator you are referring to is giving you the ROI on Your stake, which in this case is your pledge (unless you have more addresses to stake from to your own pool without contributing to your total pledge). So, in this case the 4751ADA is not the total ADA received (and redistributed by the stake pool), but it is already your calculated share. That’s why the yield is calculated against your pledge and not the total active stake in your pool. Hope this helps.

m.

Ok great - then that makes sense as 4751 ADA return on 1M ADA investment doesn’t make sense given the risks involved. Ok I appreciate the answer and will mark you answer as a solution.