Compounding Calculator
Watch consistent returns snowball. Enter a starting balance, the return you expect each period, and how many periods to compound — this projects where the account lands if every gain is reinvested.
FAQ
How does compounding work in trading?
Each period's gain is calculated on the new, larger balance, not the original. Ending balance = start × (1 + return%)^periods. Small, consistent returns snowball over time.
Is a fixed return per period realistic?
No — real returns are lumpy and drawdowns happen. Use this as a goal-setting and expectation tool, not a promise. Modest, sustainable returns beat aggressive targets that blow up.
What return should I model?
Be conservative. Many professionals would be thrilled with a few percent per month compounded. Plug in different rates to see how sensitive the outcome is to your edge.
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