Trading Compounding Calculator
Project how an account could grow from a monthly return, with optional monthly deposits and a year-by-year breakdown.
How compounding works
Compounding means each month's return is earned on a balance that already includes previous gains. Over time, growth accelerates because the base keeps getting larger.
Future balance = Start × (1 + r)^n + Deposit × ((1 + r)^n − 1) ÷ r
Here r is your monthly return and n is the number of months. At 3% a month with no deposits, $10,000 grows to about $20,300 in two years: a gain of roughly $10,300, compared with $7,200 without compounding.
Be realistic about returns
Consistent monthly returns are rare in real trading. Results vary, losing months happen, and a single large drawdown can erase months of compounding. Use this calculator to understand the math, not as a forecast.
Compounding and risk
Growing position size with your account is how compounding works in trading, but it also grows your losses. Keep risk per trade fixed as a percentage of your current balance, and check how drawdowns affect you with the drawdown recovery calculator.
Track your real growth
Clarity Tracking shows your actual equity curve, monthly returns and drawdown across every account, so you can compare real growth with your plan.
