> For the complete documentation index, see [llms.txt](https://docs.rao.cash/l/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.rao.cash/l/what-is-apy/how-is-apy-calculated.md).

# How is APY calculated?

The **APY** is calculated from the return on interest itself (based on the known relocation rate) using this formula:

Using a simple formula when calculating, <mark style="color:green;">**8% x 31 = 248%**</mark> per month and <mark style="color:green;">**8% x 365 = 2,920.08%**</mark> per year. The more transactions on the network, the more percentage you will get from relabeling.

It comes to **17 520,00** because this rebasing happens about 48 times a day - <mark style="color:green;">**8%**</mark> commission on one transaction, and there are at least 48 transactions per day. That is, the more transactions per day in our network, the higher percentage of the rebasing you get. You have to realize that there are 365 days in a year, and this will give you a recharge frequency of <mark style="color:green;">**48 x 365 = 17,520.00**</mark>. This is the simple principle of the formula.

<figure><img src="/files/Zqhoc8cOOwFP8L2rkPjc" alt=""><figcaption></figcaption></figure>


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