Forex Compounding Calculator
Reinvesting profits turns a steady return into an accelerating curve – each period earns on a larger base than the last. Enter your starting balance, the percentage you expect to make per period and how many periods you want to project. The calculator returns the final balance, your total gain and a period-by-period breakdown so you can see exactly how the growth builds.
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Without deposits: Final = Start × (1 + r÷100)n. With a deposit D at each period end: next balance = previous balance × (1 + r÷100) + D. The rate is constant in this model; the period label does not change the calculation. Deposits are separated from gains. Real returns vary, so this is an illustration rather than a forecast.
How the compounding calculator works
Compounding means each period’s profit is added to your balance and the next period’s return is calculated on that larger total. Instead of earning the same fixed amount each time, the gains themselves start earning – which is why the balance curve bends upward rather than rising in a straight line. The longer the horizon and the higher the per-period return, the more dramatic the effect.
The maths is a simple geometric progression: multiply the starting balance by one plus the periodic rate, raised to the number of periods. The period label (day, week, month, year) is just a display choice – the formula treats every period identically, so be sure your return figure matches the period you select.
Worked example
Start with $1,000 and compound 5% per month for 12 months. Final = 1,000 × (1.05)12 = $1,795.86, a total gain of $795.86 or about 79.6%. Earning a flat 5% of the original $1,000 each month would have produced only $600 – the extra $195.86 is compounding at work.
Why constant returns are a fiction
The calculator assumes the same return every period, but real trading delivers a jagged equity curve with losing streaks that compound against you. A 50% drawdown needs a 100% gain just to break even, so protecting capital matters more than chasing a high per-period number. Pair this projection with sound position sizing and an honest read on your risk of ruin.
Frequently asked questions
What return per period is realistic?
Does the period label change the result?
Can I model losses?
Does this account for withdrawals or fees?
Deposits and variable returns
Without deposits: final capital = start × (1 + r)^n. With deposit D at each period end: new balance = previous balance × (1 + r) + D. Starting at 1,000 with 10%, two periods and a 100 deposit after each gives 1,200 and then 1,420; total deposits are 200 and gain is 220. This is an arithmetic check, not a suggested expected return. An arithmetic average return is not a compound return: +10% followed by −10% gives −1% without deposits. Expectancy × trade count × risk is only an additive approximation; it does not replace modelling variable returns, costs, taxes and withdrawals. Deposits are separated from gains; the period label does not change the mathematics.
