# Yearn Finance Comic - Part 3

**Published by:** [xuanling11](https://paragraph.com/@xuanling11/)
**Published on:** 2022-04-24
**URL:** https://paragraph.com/@xuanling11/yearn-finance-comic-part-3

## Content

Photo by Christopher Carson on UnsplashThis article is sponsored by the MixPay Content Reward Program. MixPay is a decentralized crypto payment service platform built on Mixin Network. MixPay, Payment for Web3.What is the difference between APR, APY, and ROI? How does that work in Yearn Finance? Let’s explore. https://twitter.com/xuanling11/status/1517976574619922432?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1517976574619922432%7Ctwgr%5E%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fscorum.co%2Fen-gb%2Fcrypto%2F%40xuanling11%2Fyearn-finance-comic-part-3 Table of Content APR vs. APY ROI APR vs. APY vs. ROI In Conclusion APR vs. APY https://twitter.com/xuanling11/status/1511508584680472576?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1511508584680472576%7Ctwgr%5E%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fscorum.co%2Fen-gb%2Fcrypto%2F%40xuanling11%2Fyearn-finance-comic-part-3 APR is a profit associated with costs. It is a lending term that works for lenders and against borrowers. Higher APR is bad because it is risky and highly costly. APY is a profit factor in the compound interest returns. It is also a lending term that works for lenders to predict their returns associated with risks. The higher the yield, the riskier the loan will be. Both factors are not set in stone, which means they fluctuate based on the market conditions. 20% of APR or APY does not guarantee such returns eventually. You can check my previous articles about this topic here. ROIImage credit: https://docs.yearn.finance/getting-started/guides/how-to-understand-yvault-roi#roiROI or Return on Investment is a ratio between the net profit and to cost of investment. ROI reflects the efficiency of the investment. It is a projection factor that evaluates products using their past performance. Depending on the length of your investment and strategies, the ROI may vary. APR vs. APY vs. ROIImage credit: https://yearn.finance/#/vault/0xd88dBBA3f9c4391Ee46f5FF548f289054db6E51CAPR and APY can only estimate the potential returns. They do not give you a full picture of how you yield your investment. However, ROI gives useful information about the performance of your investment. To do so, you may calculate by yourself here. Luckily, Yearn Finance did it automatically on their platform. In Conclusion APR and APY can only provide estimated returns but ROI gives more concrete information about how your investment performed.Donate with MixPayhttps://mixpay.me/40440862/Donation

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