Free calculator
Trading Compounding Calculator
Pick a starting balance, a monthly percent and a number of months. See how the result builds on itself. Try a negative number too: losses compound the same way.
- Forex
- Gold
- Indices
- Stocks
- Crypto
Percent math only, so it is the same for any market.
Monthly breakdown
| Month | Balance | Change from start |
|---|---|---|
| 0 | $1,000 | +$0 |
| 1 | $1,020 | +$20 |
| 2 | $1,040 | +$40 |
| 3 | $1,061 | +$61 |
| 4 | $1,082 | +$82 |
| 5 | $1,104 | +$104 |
| 6 | $1,126 | +$126 |
| 7 | $1,149 | +$149 |
| 8 | $1,172 | +$172 |
| 9 | $1,195 | +$195 |
| 10 | $1,219 | +$219 |
| 11 | $1,243 | +$243 |
| 12 | $1,268 | +$268 |
For learning and planning. The numbers are math on what you type, not a prediction.
Open TradingView chartsAffiliate link. Charting software, not a signal.
What is compounding?
Compounding means each month's change is worked out on the new balance, not the starting one. Gains build on gains, and losses build on losses.
The rate you type is an example. Real results change every month and can be negative. Use this to understand the math, not to plan income.
The formula in plain words
- Each month: new balance = old balance times (1 plus the monthly rate).
- Over many months: ending balance = start times (1 plus the rate) raised to the number of months.
Ending balance = Start × (1 + Rate) ^ Months
Worked example
$1,000 for 12 months at plus 2% and at minus 2% a month
- 1Plus 2%: $1,000 × 1.02 to the 12th power = about $1,268.
- 2Minus 2%: $1,000 × 0.98 to the 12th power = about $785.
- 3Both use the same small rate. One grows the account, one shrinks it.
A steady 2% a month for a year turns $1,000 into about $1,268. A steady loss of 2% a month turns it into about $785. Neither is a prediction.
Common mistakes
- Treating a monthly rate as something you can count on. Real months go up and down.
- Planning to live on compounded returns. That is a plan built on a guess.
- Forgetting that one big loss can undo many small gains. See the drawdown recovery calculator.
Questions people ask
Is a steady monthly return realistic?
Real trading results are uneven, and many traders lose money. Treat any steady rate here as a math example only.
What do monthly deposits do?
They add new money each month, which then compounds too. That growth comes from saving, not from trading skill.
What is CAGR?
Compound annual growth rate. It is the one steady yearly rate that would take a start value to an end value.
Learn the idea behind it
The calculator does the math. These free lessons explain when and why to use it.
Need a broker to practice?Start with a Genesis demo accountPaid partner link
Demo first. Trading has risk of loss. Education, not financial advice.