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Compounding Calculator

See exactly how an account grows when you reinvest profits month after month. Realistic returns produce surprisingly large numbers over time.

Inputs
Balance after 24 months
$20,327.94
Total return: 103.3% · Annualized equivalent: 42.6%
Equity curve
1

Set your starting balance

The account you'll begin trading with.

2

Enter realistic monthly return

1-3% per month is sustainable for most pros. 10%/month is fantasy outside short windows.

3

Pick the horizon

Months or years you'll be trading and reinvesting.

Calculating one trade is easy. Tracking 500 with discipline is the edge.

Create Impacts logs the entry, stop, lots and outcome of every trade so you can see your real R-multiples, plan compliance and discipline score over hundreds of executions.

FAQ

What is compounding in trading?

Reinvesting profits so each period's return is calculated on a larger base. Over time small monthly returns turn into outsized growth, a 5% monthly return compounds to ~80% per year.

Is 10% a month realistic?

For brief periods yes, but sustaining 10%+ per month for years is extremely rare. Use realistic numbers (1-3% per month) when planning a real account.

What's the compounding formula?

Final balance = Start × (1 + monthly return)^months. The calculator runs this period by period so you can see the curve.

Other free calculators

Educational tool only, not financial advice. Real results depend on spread, commissions, slippage and overnight swaps.