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Forex Compounding Calculator

Project how an account grows when returns are reinvested, with optional regular deposits.

USD

What the account holds when compounding starts.

months

Whole number, up to 1,200.

%

Negative values show how losses compound.

USD

At the end of each month. A minus is a withdrawal.

Final balance

$20,398.87

after 36 months

Total deposited

$10,000.00

Start + deposits

Total earnings

$10,398.87

Growth multiple

2.04×

Final ÷ total deposited

Annualised return

26.82%

2% a month, compounded

Balance over timeBalanceDeposited
MonthBalanceEarnings
3$10,612$612
6$11,262$1,262
9$11,951$1,951
12$12,682$2,682
15$13,459$3,459
18$14,282$4,282
21$15,157$5,157
24$16,084$6,084
27$17,069$7,069
30$18,114$8,114
33$19,222$9,222
36$20,399$10,399

Assumes the same return every period with all profits reinvested. Real returns vary, and losses hurt more than gains help: −50% followed by +50% leaves you at 75%.

Show the math
  1. Each monthbalance × (1 + 2%)
  2. Growth factor(1 + 2%)^36 = 2.0399
  3. Final = B × (1 + r)^n$10,000.00 × 2.0399 = $20,398.87
  4. Earnings = final − deposited$20,398.87 − $10,000.00 = $10,398.87
  5. Annualised return = (1 + r)^12 − 1(1 + 2%)^12 − 1 = 26.82%
Embed this calculator

Quick answer

Final balance = starting balance × (1 + r)^n, where r is the return per period and n the number of periods; deposits D at the end of each period add D × ((1 + r)^n − 1) ÷ r. $10,000 compounding at 5% per period grows to about $17,959 after 12 periods and about $57,918 after 36.

Growth of $10,000 at common monthly returns

Each cell is the balance after compounding $10,000 at a steady monthly return with no deposits or withdrawals. Real trading returns are uneven, and very few traders sustain more than a few percent a month.

Balance after compounding $10,000 monthly
Monthly return12 months (1 yr)24 months (2 yr)36 months (3 yr)60 months (5 yr)
1%$11,268$12,697$14,308$18,167
2%$12,682$16,084$20,399$32,810
3%$14,258$20,328$28,983$58,916
5%$17,959$32,251$57,918$186,792
10%$31,384$98,497$309,127$3,044,816

Pure maths, no market data. Before taxes, fees and losing months.

What is the Forex Compounding Calculator?

Compounding means each period's return is earned on the balance including earlier gains, so growth accelerates over time. The forex compounding calculator projects an account that earns the same percentage every period, with an optional deposit added at the end of each period.

Final balance = B × (1 + r)n
With deposits D: Final = B × (1 + r)n + D × ((1 + r)n − 1) ÷ r

$10,000 at 5% a month becomes $10,500 after one month and $11,025 after two — the second month earns $525, not $500. After 36 months the factor is 1.0536 ≈ 5.79, so the balance is about $57,918, not the $28,000 that simple (non-compounded) growth would give.

The same arithmetic works against you. A −2% month repeated compounds the loss, and returns are not symmetric: −50% followed by +50% leaves 75% of the starting balance. Real trading returns vary from period to period, so the projection shows what a steady rate would produce, not what to expect.

Daily compounding. Set the period to Days to compound daily, as a daily compound interest calculator does. 0.5% a day for 20 trading days turns $10,000 into about $11,049; simple growth at the same rate gives $11,000.

How to use this calculator

  1. Account currency — the currency the balance is shown in.
  2. Starting balance.
  3. Period — Trades, Days, Weeks, Months or Years. The other labels follow your choice.
  4. Return per period — in %. Negative values show how losses compound.
  5. Number of periods — a whole number up to 1,200.
  6. Deposit per period — optional, added at the end of each period; a negative amount is a withdrawal.

The result shows the final balance, the total contributed (start plus deposits), total earnings and the growth multiple, with a chart of balance against contributions and a table of milestones. Show the math gives the growth factor and formula with your numbers; Copy link with these numbers saves the projection.

Worked example

$5,000 at 3% a month, no deposits.

  • After 12 months: $5,000 × 1.0312 = $7,128.80 (3% a month is 42.6% a year, not 36%)
  • After 24 months: $10,163.97
  • After 36 months: $14,491.39
  • After 60 months: $29,458.02

Adding $500 at the end of each month. After 36 months: $14,491.39 + $500 × (1.0336 − 1) ÷ 0.03 = $46,129.36, of which $23,000 is money paid in.

Scale check. 20% a month compounds to 1.212 ≈ 8.9 times the balance in a year (+792%). Rates like that are not sustained in practice; use the calculator to test assumptions, not to set targets.

When to use it

  • Testing whether a goal is realistic — see the monthly return a target balance would require.
  • Showing the effect of deposits — compare growth with and without regular contributions.
  • Seeing how losses compound — enter a negative return to see a steady loss rate over time.
  • Per-trade growth — set the period to Trades and enter the average return per trade.

Common mistakes

  • Assuming the same return every period. Varying returns compound to less than their average: +20% then −20% is −4%, not 0%.
  • Multiplying the monthly rate by 12. 3% a month compounds to 42.6% a year; 1% a month to 12.7%.
  • Ignoring drawdowns. A 50% loss needs a 100% gain to recover.
  • Leaving out costs, taxes and withdrawals. All of them reduce the balance that compounds.

Frequently asked questions

How is compound growth calculated?

Final balance = starting balance × (1 + r)^n, where r is the return per period and n the number of periods. $10,000 at 5% per period for 12 periods is $10,000 × 1.05^12 ≈ $17,959; for 36 periods it is about $57,918.

How are deposits handled?

Each deposit is added at the end of its period and compounds from then on. The total from deposits is D × ((1 + r)^n − 1) ÷ r; with a 0% return it is simply D × n.

What monthly return is realistic?

Returns vary widely, and many retail traders lose money. Consistent monthly returns of several percent over years are rare. Use conservative figures and remember that the projection assumes no losing periods.

Why does a loss followed by an equal gain not break even?

The gain is earned on a smaller balance. After −50%, a $10,000 account is $5,000; +50% brings it to $7,500. To recover, the gain must be 1 ÷ (1 − loss) − 1, which for a 50% loss is 100%.

Can I compound per trade?

Yes. Set the period to Trades and enter your average return per trade. This assumes you risk a fixed share of the current balance, so position sizes grow with the account.

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