Compounding Calculator
See how consistent monthly returns and regular deposits can grow a trading account over time — and why protecting capital matters so much.
Balance after 24 months
$20,633
Total growth 110.5% on deposits
- Total deposited
- $9,800
- Trading profit
- $10,833
- Effective annual return
- 60.1%
- Month 12
- $11,010
- Month 24
- $20,633
Hypothetical illustration only. Real trading returns are volatile and losses are common.
How to use it
- 1
Enter your starting balance and expected monthly return.
- 2
Add an optional monthly deposit.
- 3
Adjust the number of months to see the growth curve and yearly milestones.
Ready to put it into practice?
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Compare brokersFrequently asked questions
Is a 4% monthly return realistic?
Consistently making 4% per month is very difficult — it equals roughly 60% per year. Use conservative assumptions and remember that losses compound too.
Why does compounding matter for traders?
Reinvesting profits means future gains are calculated on a larger balance, which accelerates growth — while large drawdowns require disproportionately large gains to recover.