InputsLive
Compounding
Initial principal
$
Monthly contribution
$/mo
Annual interest rate
%
Years
yrs
Result
Future value
$37,405
Interest: $15,405 · Invested: $22,000
Future value$37,405
Interest earned$15,405
Total invested$22,000
Growth factor1.7×

Hypothetical projection. Excludes taxes, inflation, and fees. Actual investment returns vary.

Results are estimates. Consult a professional.

How it's calculated

How the forex compounding calculator works

A forex compounding calculator projects how a trading account could grow if you earn a consistent percentage return each period and reinvest all profits. The same compound interest math that applies to savings accounts applies here — the difference is that the 'interest rate' is a trading return, which is variable, not guaranteed, and can be negative.

The calculator steps the balance forward period by period: each period's balance is multiplied by (1 + return), then any regular deposit is added. Conservative traders model 3–5% monthly returns; aggressive targets of 10% or more per month are possible in principle but historically unsustainable for most traders due to losing months, drawdowns, and leverage risk.

Balance after n periods:
B(n) = B0 × (1 + r)^n + D × ((1 + r)^n 1) / r
B0 = starting balance | r = periodic return (decimal) | D = periodic deposit | n = periods
Single period step: B(next) = B(current) × (1 + r) + D
General compound interest formula (Investopedia — Compound Interest). Note: forex trading returns are unregulated projections, not guaranteed rates.
Example

Worked example: $10,000 at 5% monthly return for 12 months

Example: $10,000 starting balance, 5% monthly return, $500/month added, 12 months

A trader starts with $10,000, targets a 5% monthly return, and deposits an additional $500 each month. The projection shows where the account could be after 12 months if every month hits the target — a major assumption. This illustrates the mathematical potential, not a likely outcome.

B(12) = 10,000 × (1.05)^12 + 500 × ((1.05)^12 1) / 0.05
(1.05)^12 = 1.79586
B0 term = 10,000 × 1.79586 = $17,959
D term = 500 × (1.79586 1) / 0.05 = 500 × 15.917 = $7,959
B(12) = $17,959 + $7,959 = $25,918
$25,918 (theoretical)
$10,000 compounding at 5% per month for 12 months with $500 monthly deposits reaches $25,918 in the model. This is a mathematical projection only — consistent 5% monthly returns are extremely difficult to sustain in live trading.
Quick reference

Projected balance from $10,000 at various monthly returns and deposits

The table projects a $10,000 starting balance at three monthly return rates and three monthly deposit levels over 6, 12, 24, and 36 months. These are mathematical projections assuming consistent returns — not forecasts.

Return / Deposit6 months12 months24 months36 months
3% / $0/mo$11,941$13,439$18,061$24,273
3% / $500/mo$15,096$19,384$32,611$50,817
3% / $1,000/mo$18,250$25,330$47,161$77,360
5% / $0/mo$13,401$17,959$32,251$57,918
5% / $500/mo$17,001$25,918$55,414$113,609
5% / $1,000/mo$20,601$33,878$78,578$169,300
10% / $0/mo$17,716$31,384$98,497$309,127
10% / $500/mo$22,954$46,893$164,781$557,399
10% / $1,000/mo$28,192$62,401$231,064$805,671

$10,000 starting balance. Assumes constant positive return every period — a highly optimistic assumption. Figures are mathematical projections only. No authoritative forex return source cited as returns vary entirely by trader and strategy.

Practical tips

Tips for using forex compounding projections

The numbers in a forex compounding calculator look spectacular. Before treating them as a trading plan, consider these realities.

  • Model drawdowns, not just winning months — even a 10% losing month at 5% average return dramatically cuts the trajectory. Build a version of the table where every 4th month returns −15% to see a more realistic path.
  • Use conservative return targets for planning — 1–3% monthly is the range where disciplined professional traders operate; 5% is ambitious; 10% per month sustained for years is nearly unheard of outside very short track records.
  • Size positions to survive losing streaks — the compounding curve is only as good as your ability to stay in the game. A 50% drawdown requires a 100% gain just to break even. Risk management comes before compounding.
  • Account for withdrawals and taxes — the projection assumes all profits stay in the account. Tax on trading profits and periodic withdrawals both reduce the compounding base and flatten the actual curve.
  • Use the calculator to find the return you need, not to set expectations — enter your starting balance, a realistic timeline, and a target balance to back-calculate the required monthly return. If that number is above 5%, revisit the target.
Accuracy & limits

Accuracy and limitations

This calculator applies the standard compound interest formula to a user-supplied periodic return rate. It assumes the return is constant and positive every single period — an assumption that does not reflect real trading, where returns fluctuate, losses occur, and drawdowns compound in reverse. The calculator does not model leverage, margin calls, spreads, commissions, slippage, overnight swap fees, or taxes, any of which can significantly reduce actual account growth.

Forex and CFD trading involves substantial risk and is not suitable for all investors. The majority of retail traders lose money. This calculator is a mathematical tool for exploring compounding mechanics, not a forecast of trading performance, and nothing here constitutes financial or investment advice.

Glossary

Forex compounding terms defined

Reinvesting trading profits so that each period's return applies to a growing balance rather than a fixed starting amount. The same mathematics as savings-account compounding, but the 'rate' is an unguaranteed trading return.
The percentage gain (or loss) on the account in a single month, expressed as a decimal in the formula. A 5% monthly return = r = 0.05.
A peak-to-trough decline in account balance. A 20% drawdown requires a 25% gain to recover to breakeven; a 50% drawdown requires 100%. Drawdowns destroy compounding momentum.
Additional funds added to the account each period (monthly, in most forex compounding calculators). Deposits increase the compounding base without requiring trading returns.
Borrowed capital that amplifies both gains and losses. A 10:1 leverage ratio means a 1% price move produces a 10% account move. Leverage is not modelled in the basic compounding formula.
The probability of losing enough of the trading account that recovery is effectively impossible. Compounding projections ignore risk of ruin; real trading plans must account for it through position sizing and risk limits.
About

About this forex compounding calculator

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Questions

Frequently asked questions about the free forex compounding calculator

A forex compounding calculator is a free online tool that helps you compound a fixed-rate forex return over a number of periods with optional periodic deposit. Used by forex traders to project compounding returns. Doesn't account for drawdowns or losses. It runs entirely in your browser with instant results and no sign-up.
No — actual loan terms depend on credit, income docs, and lender underwriting. Use this for planning and what-if scenarios; get a real Loan Estimate before making decisions.
When the calculator asks for them. PITI calculations include property tax, insurance, and PMI; raw P&I calculations don't.
Lenders round payment amounts and may include escrow buffers. Property tax and insurance change over time. Real payments vary 1-5% from these estimates.

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