# Staking Rewards Calculator by Dr. Ichikawa **URL:** \ **Category:** Education\ **Created:** [27 December 2017 16:35 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209 "2017-12-27T16:35:14Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![Chainomatic](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/chainomatic/32/135_2.png) [@Chainomatic](https://forum.cardano.org/u/Chainomatic)\ **Post date:** [27 December 2017 16:35 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/1 "2017-12-27T16:35:14Z")
A very nice [ADA calculator by Dr. Ichikawa](http://ada-calc.herokuapp.com) ![02](https://us1.discourse-cdn.com/flex023/uploads/cardano/original/2X/c/c7fd69e8b29c273b8c550375178c35b7fadd61ff.png) ---
**Author:** ![werkof](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/werkof/32/1337_2.png) [@werkof](https://forum.cardano.org/u/werkof)\ **Post date:** [27 December 2017 16:50 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/2 "2017-12-27T16:50:23Z")
Where does the mentioned interest rates came from? ``` Interest Rate = 9.13% (1st & 2nd year), 6.28% (3rd year), 4.57% (4th year) ``` ---
**Author:** ![eduardomk](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/eduardomk/32/772_2.png) [@eduardomk](https://forum.cardano.org/u/eduardomk)\ **Post date:** [27 December 2017 17:53 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/3 "2017-12-27T17:53:24Z")
This calculator sounded very much magical to me. What is the formula of it? ---
**Author:** ![Chainomatic](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/chainomatic/32/135_2.png) [@Chainomatic](https://forum.cardano.org/u/Chainomatic)\ **Post date:** [27 December 2017 17:57 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/4 "2017-12-27T17:57:15Z")
9.13% (1st & 2nd year) 6.28% (3rd year) 4.57% (4th year) So for example if you have 1,000 ADA: 1,000 x 0.0913 = 91.3 ADA 9.13% = 0.0913 6.28% = 0.0628 etc Did this help? ---
**Author:** ![eduardomk](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/eduardomk/32/772_2.png) [@eduardomk](https://forum.cardano.org/u/eduardomk)\ **Post date:** [27 December 2017 18:24 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/5 "2017-12-27T18:24:19Z")
Nop, where did 9.13, 6.28 and 4.57% came from? ---
**Author:** ![anon97642430](https://avatars.discourse-cdn.com/v4/letter/a/bbce88/32.png) [@anon97642430](https://forum.cardano.org/u/anon97642430)\ **Post date:** [27 December 2017 20:25 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/6 "2017-12-27T20:25:53Z")
And why stops at year 4? ---
**Author:** ![Vanamonde](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/vanamonde/32/20593_2.png) [@Vanamonde](https://forum.cardano.org/u/Vanamonde)\ **Post date:** [27 December 2017 21:39 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/7 "2017-12-27T21:39:10Z")
what interests rate?where can I read about it? ---
**Author:** ![Chainomatic](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/chainomatic/32/135_2.png) [@Chainomatic](https://forum.cardano.org/u/Chainomatic)\ **Post date:** [27 December 2017 22:06 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/8 "2017-12-27T22:06:51Z")
It is a forward looking calculator, when the _**[reward era](https://cardanodocs.com/timeline/reward/)**_ starts Cardano will operate completely decentralized until then this is an EXAMPLE of what you can expect. Given the source I would say the reward example should be close. > [@anon97642430](#): > > And why stops at year 4? This calculator only goes to up to year 4,a design choice. Read more about Cardano’s novel reward mechanism for incentivizing Proof of Stake: [Ouroboros: A Provably Secure Proof-of-Stake Blockchain Protocol](https://eprint.iacr.org/2016/889) ---
**Author:** ![Vanamonde](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/vanamonde/32/20593_2.png) [@Vanamonde](https://forum.cardano.org/u/Vanamonde)\ **Post date:** [28 December 2017 09:10 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/9 "2017-12-28T09:10:06Z")
@Chainomatic I wish I could understand that paper, but that math is accessible only to PhDs, am I wrong? would be nice someone summing it up to make it accessible to common mortals ---
**Author:** ![isferos](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/isferos/32/1699_2.png) [@isferos](https://forum.cardano.org/u/isferos)\ **Post date:** [28 December 2017 11:04 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/10 "2017-12-28T11:04:49Z")
At the top of the calculator site, it says: > This site is unofficial and the result is approximate. We can’t guarantee your future rewards. It sounds like the rates of return are currently speculative. ---
**Author:** ![ZCryt0Knight](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/zcryt0knight/32/9097_2.png) [@ZCryt0Knight](https://forum.cardano.org/u/ZCryt0Knight)\ **Post date:** [11 April 2018 17:27 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/11 "2018-04-11T17:27:50Z")
This is awesome! Where did you get the numbers from? Arigato Hozarimas. ---
**Author:** ![vantuz-subhuman](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/vantuz-subhuman/32/3976_2.png) [@vantuz-subhuman](https://forum.cardano.org/u/vantuz-subhuman)\ **Post date:** [11 April 2018 17:34 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/12 "2018-04-11T17:34:01Z")
> [@werkof](#): > > Where does the mentioned interest rates came from? > [@eduardomk](#): > > What is the formula of it? > [@eduardomk](#): > > where did 9.13, 6.28 and 4.57% came from? > [@Vanamonde](#): > > what interests rate?where can I read about it? > [@isferos](#): > > It sounds like the rates of return are currently speculative. All these questions, without an answer… And yet, 3 months later: > [@ZCryt0Knight](#): > > Where did you get the numbers from? We are all interested, but I think the answer is lost in time 🙂 P.S. But everyone seem to enjoy some magic that shows them “much profit!” =) ---
**Author:** ![Adafans\_io](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/adafans_io/32/2381_2.png) [@Adafans\_io](https://forum.cardano.org/u/Adafans_io)\ **Post date:** [12 April 2018 05:40 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/13 "2018-04-12T05:40:31Z")
Data comes from the old monetary policy. ![old%20monetary%20policy](https://us1.discourse-cdn.com/flex023/uploads/cardano/original/2X/7/72649b0cd5b580abe716c7b373e0f9fc0f42c12d.jpg) So Dr. Ichikawa just did the math ( 2000 ada per block) ---
**Author:** ![Adafans\_io](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/adafans_io/32/2381_2.png) [@Adafans\_io](https://forum.cardano.org/u/Adafans_io)\ **Post date:** [12 April 2018 05:59 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/14 "2018-04-12T05:59:06Z")
> [@vantuz-subhuman](#): > > P.S. But everyone seem to enjoy some magic that shows them “much profit!” =) No magic my man 😘 ---
**Author:** ![Adafans\_io](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/adafans_io/32/2381_2.png) [@Adafans\_io](https://forum.cardano.org/u/Adafans_io)\ **Post date:** [12 April 2018 08:15 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/15 "2018-04-12T08:15:10Z")
Friends… please review this “basic” math so 2000 ada per slot for 3 744 961 slots 1 epoch = 21599 slots so for 173 epochs (865 days 7 489 922 000 ada will be minted -25 % to treasury = 5 617 441 500 distributed as rewards 5 617 441 500 ada during 865 days (2.3 years) = 1 year = 2 442 365 869 ada Circulating Supply 25,927,070,538 ADA 9% of it is ~ 2.3 bil ada - very close to this 2.4 bil math **If all ada will be staked we will still be getting almost 10%** **if less, than even more**? ---
**Author:** ![\_ilap](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/_ilap/32/80886_2.png) [@\_ilap](https://forum.cardano.org/u/_ilap)\ **Post date:** [12 April 2018 09:51 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/16 "2018-04-12T09:51:31Z")
That’s nice, where did you get that as I was trying to find any related stuff on the web archive and other sources wo/ any success. ---
**Author:** ![Adafans\_io](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/adafans_io/32/2381_2.png) [@Adafans\_io](https://forum.cardano.org/u/Adafans_io)\ **Post date:** [12 April 2018 09:52 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/17 "2018-04-12T09:52:43Z")
A print screen from [https://cardanodocs.com/cardano/monetary-policy/](https://cardanodocs.com/cardano/monetary-policy/) (old version obv) ---
**Author:** ![vantuz-subhuman](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/vantuz-subhuman/32/3976_2.png) [@vantuz-subhuman](https://forum.cardano.org/u/vantuz-subhuman)\ **Post date:** [12 April 2018 09:52 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/18 "2018-04-12T09:52:53Z")
> [@Adafans\_io](#): > > Data comes from the old monetary policy. Thank you @Adafans_io for finally resolving this age-old question! 🙂 I now understand the reasoning behind the calculator, so that question is closed, thank you! About the numbers, tho: they still seem waaaay off to me 😬 10% inflation is way much, and then rapid drop to 5% seem way rapid. It would be an explosive inflation for few first years decreasing at speed `2000/2^(year-1)` so in year 6 it would already be `2000/2^5 = 2000/32 = 62 ADA per block` and this would only be 2025, which is not that far away. I guess ADA would cost more in 2025, but not necessarily **that** much more, and the competition would also probably get higher for pools. In the current revision of the monetary policy - there’s no such numbers, which makes sense to me ([https://cardanodocs.com/cardano/monetary-policy/](https://cardanodocs.com/cardano/monetary-policy/)). I reckon something more smooth, like: 5% first year, 4.5% next year, 4% next year, 3.66% next year, 3.33% next year, etc. would be more suitable, but I didn’t run the math, tho 😃 * * * UPD: math is _waaaaay_ off, since I wrongly assumed that halving would happen each year. In reality it would happen ~ each 2.5 years (3’744’961 slots, but it implies an assumtion that slot time will not change, so in reality might be way more often, if we switch, for example to a 10 second slots). That would give us inflation reduction at more conservative rate of `2000/2^((year/2.5)-1)`, so 62 ADA per block would be reached in around year 2031, not 2025. Sorry for the mistake. ---
**Author:** ![\_ilap](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/_ilap/32/80886_2.png) [@\_ilap](https://forum.cardano.org/u/_ilap)\ **Post date:** [12 April 2018 09:57 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/19 "2018-04-12T09:57:00Z")
Thx, it makes sense. ---
**Author:** ![Adafans\_io](https://sea1.discourse-cdn.com/flex023/user_avatar/forum.cardano.org/adafans_io/32/2381_2.png) [@Adafans\_io](https://forum.cardano.org/u/Adafans_io)\ **Post date:** [12 April 2018 10:00 UTC](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209/20 "2018-04-12T10:00:08Z")
> [@vantuz-subhuman](#): > > I reckon something more smooth, like: 5% first year, 4.5% next year, 4% next year, 3.66% next year, 3.33% next year, why they used 2000/1000/500 in old policy? Halving countdown for btc [http://www.bitcoinblockhalf.com/](http://www.bitcoinblockhalf.com/) [Next page](https://forum.cardano.org/t/staking-rewards-calculator-by-dr-ichikawa/4209.md?page=2)