> For the complete documentation index, see [llms.txt](https://docs.neutral.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.neutral.trade/additional-info/apy-and-apr-calculations.md).

# Trailing APY and APR Calculations

How Neutral Trade calculates the Trailing APR and Trailing APY from a vault's price per share, the time windows the app uses, target figures, and gross versus net.

Every measured yield figure in the Neutral Trade app comes from one number: the vault's **price per share (PPS)**. This page explains how PPS becomes a Trailing APR and a Trailing APY, and how to read the figure you see on a vault.

## Why "Trailing"

The app labels every measured rate as **Trailing APY** (or **Trailing APR** when you switch the toggle to APR). The figure looks back, not forward: it takes the vault's return over a past window that ends today and annualizes it. It is not a projected or promised rate.

A figure on a new vault that does not yet have enough live history is labelled **Target**, not Trailing. See [Target Figures on New Vaults](#target-figures-on-new-vaults).

## Trailing APR

Trailing APR compares the current price per share with the price per share at the start of a time window, then annualizes the result. It is a simple annualization with no compounding.

```
return = (PPS_end - PPS_start) / PPS_start
APR    = return * (365 / days in window)
```

## Trailing APY

Trailing APY converts the Trailing APR with daily compounding:

```
APY = (1 + APR / 365) ^ 365 - 1
```

## Time Windows

The app calculates yield over three trailing windows: **30 days, 90 days, and All**. On a strategy page you can switch between the windows.

* The headline Trailing APY on a vault is the highest of the available windows. The tooltip on the figure shows which window is in use.
* A short window reacts quickly to recent performance. A long window is steadier and includes more market conditions.
* **All** is the full track record. On a vault with a Pre-Neutral track record, the All basis includes that record. The live basis does not.
* When none of the windows is positive, the app shows the cumulative **ROI** over the full live period instead of an annualized rate.

## Target Figures on New Vaults

Until a vault has 60 days of live history, the app can show a **Target APR** or **Target APY**. A target is marked with a dashed underline. It is an objective that comes from the strategy's earlier track record or backtest. It is not a measured return on Neutral Trade, and it is not a commitment.

When the vault has enough live history, the target is replaced by the Trailing APY of the measured windows.

## Gross and Net

* **Gross** figures are before fees.
* **Net** figures are after the vault's management fee and performance fee.

The tooltip on the Trailing APY shows both. Your own result also depends on your entry date, your high-water mark, and any VIP discount. See [Fees + Redemption Period](/additional-info/fees-+-redemption-period.md).

## Pre-Launch Track Record

Some vaults show a track record from before the strategy was listed on Neutral Trade. The app marks this period as **Pre-Neutral** and lets you switch between the full track record and the period on Neutral Trade.

## What These Numbers Are Not

A Trailing APR or Trailing APY describes past performance over a stated window. A target describes an objective. Neither is a forecast or a guarantee. A vault with a positive Trailing APY can still have losing weeks and months. Check the Sharpe ratio, the maximum drawdown, and the monthly returns on the vault page, and read the [Risk Overview](/for-capital-allocators/risk-overview.md).

## Common Questions

**What does "Trailing" mean?**

The figure is measured over a past window that ends today, then annualized. It shows how the vault has performed, not how it will perform.

**Is the Trailing APY guaranteed?**

No. A Trailing APY is a historical figure, and a Target APY is an objective.

**What does a dashed underline on an APY mean?**

The figure is a Target APY, shown because the vault does not yet have 60 days of live history.

**Why does the Trailing APY change when I switch the window?**

Each window measures a different period. A strategy that had a strong month shows a higher 30-day figure than its 90-day or All figure.

**Is the headline Trailing APY before or after fees?**

The tooltip on the Trailing APY shows the gross and the net figure, so you can read both.