How to use it
- Enter the amount you plan to move, in CAD.
- Enter the extra APR the new position earns over leaving the funds where they are.
- Enter gas to enter, gas to exit and any bridge fee, in CAD.
- Enter the swap fee and the slippage you expect, as percentages.
- Read the payback period and minimum sizes, and compare them with how long you expect to stay.
Fixed costs and variable costs
Switching costs come in two kinds. Fixed costs (gas to enter, gas to exit and a flat bridge fee) are the same whether you move $500 or $50,000. Variable costs (the swap fee and slippage) grow with the amount. The extra yield also grows with the amount, so fixed costs are what make small moves uneconomic.
The calculator compares the up-front total with the extra yield earned per day, using simple interest, to find a payback period. It counts the exit cost now, because you will pay it eventually.
Worked example
Illustrative inputs: moving $5,000 to earn 4% more APR, with $15 of gas to enter, $15 to exit, a $10 bridge fee, a 0.3% swap fee and 0.2% slippage.
Moving $20,000 instead brings the total cost to $140 (0.70%) and the payback to 63.9 days. Larger moves dilute the fixed costs but never the variable ones.
| Measure | Result |
|---|---|
| Variable costs (0.5% of $5,000) | $25.00 |
| Fixed costs | $40.00 |
| Total cost | $65.00 (1.30% of the amount) |
| Extra yield per day | $0.55 |
| Days to pay back | 118.6 |
| Minimum size to pay back in 30 days | Not possible at these rates |
| Minimum size to pay back in 90 days | $8,225.35 |
| Minimum size to pay back in 365 days | $1,142.86 |
Why some payback targets are impossible
Over 30 days, a 4% APR advantage earns 4% × 30/365, about 0.33% of the amount. The swap fee and slippage alone cost 0.5% of the amount. No position size can fix that, because both sides grow in step with the amount, so the calculator reports it as not possible. Only a larger yield advantage, a longer stay or lower percentage costs can change the answer.
This is the most useful output for anyone who moves funds often. If a yield gap must last for months to pay for the move, a change in rates during that time can turn the move into a net loss.
What the estimate leaves out
Gas varies with network congestion, so your actual entry and exit fees may differ widely from the inputs. The model does not include bridge risk, the time funds spend in transit earning nothing, or the tax effect of the swap. For a detailed look at transfer costs, use the bridge cost calculator.
It also compares yield only. If the new position adds price exposure, impermanent loss or a lockup, those effects can outweigh the switching costs entirely.
A useful habit is to rerun the calculator with the yield advantage you would accept as a pessimistic case, for example half the current gap. If the payback period then runs longer than you expect to stay, the move depends on rates holding up, and you are taking that risk on top of the costs.
Canadian record-keeping
Under CRA's general crypto-asset guidance, trading one crypto-asset for another is a disposition, so a move that feels like a reshuffle can create a capital gain or loss. CRA's records guidance asks you to keep the date, the CAD value, the nature of each transaction and the wallet addresses involved, for at least six years.
CRA describes adjusted cost base as usually the cost of a property plus the expenses to acquire it, so fees paid to buy a crypto-asset generally belong in its cost. Track them with each trade; the ACB calculator keeps the average cost straight.