> For the complete documentation index, see [llms.txt](https://puzzle-lend.gitbook.io/guidebook/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://puzzle-lend.gitbook.io/guidebook/borrowers-guide/net-apy.md).

# Net APY

How your Net APY is calculated

Net APY refers to the overall profitability or unprofitability of your account based on your current assets and loans.

Net APY is calculated as follows:​

​

$$
\begin{split}
Margin = \sum\_{assets} (SuppliedValue\_i\cdot SupplyAPY\_i -\newline BorrowedValue\_i\cdot BorrowAPY\_i)
\end{split}
$$

$$
Net APY = \begin{cases}
\frac{Margin}{totalSuppliedValue},\&if\ Margin>0\newline\newline \frac{Margin}{totolBorrowedValue}, \&if\  Margin <0\newline
0, \&if\ Margin=0 \end{cases}
$$

**Example**

Supplied: 1000 WAVES ($5000) with 4% Supply APY.

Borrowed: 1000 USDT ($1000) with 8% Supply APY.

Margin = 5000 ⋅ 0.04 – 1000 ⋅ 0.08 = 200 – 80 = 120 > 0

Net APY = 120 / 5000 = 0.024 = 2.4%