> For the complete documentation index, see [llms.txt](https://eggplus.gitbook.io/welcome-to-gitbook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://eggplus.gitbook.io/welcome-to-gitbook/how-it-works/fixed-apy.md).

# Fixed APY

**APY represents the annual rate of return. This measures the actual rate of return on your principal by considering the impact of compound interest. In the case of EggPlus, your $EGGPLUS represents your principal and is compounded regularly on each rebase event (every 15 minutes), also known as the "era".**

**Your new principal amount is your current $EGGPLUS amount at that time, plus your new variable base token amount. This total amount is calculated for your next rebase award.**

**The power of compound interest - it is important to note that your balance will grow exponentially over time. Compound interest of 0.021447% / 15 minutes:**

<mark style="color:green;">**Example**</mark>**&#x20;1: if your balance is only 1 $EGGPLUS at the beginning of day 1, your balance will increase to 1832.94 $EGGPLUS after one year.**

![](https://3449430676-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FrcxqLdgCWdHqrL7yir1c%2Fuploads%2FFZ4SyYgt0LYZRguB5J5O%2FBalanceChart_Token.png?alt=media\&token=4fdb5806-568c-488c-882d-1f3af2eb4ff6)

<mark style="color:green;">**Example 2:**</mark>**&#x20;if your balance is only $1,000 at the beginning of the first day, it will increase to $1,832,940 after a year.**

![](https://3449430676-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FrcxqLdgCWdHqrL7yir1c%2Fuploads%2Fapds0ZjCTZtGSVmvBvbj%2FBalanceChart_USD.png?alt=media\&token=c0b0468b-b34f-4447-ade4-61fd300d3ba3)