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Compound Interest Calculator

Visualize how your trading account grows with consistent returns and the power of compounding.

1Parameters

$
$

2Growth Projection

Final Balance after 24 months
$32,251
+222.5% total return
Total Profit
$22,251
Total Deposited
$10,000
Annual Return
79.6%
Multiplier
3.2x
Growth Chart
$10,500
$11,025
$11,576
$12,155
$12,763
$13,401
$14,071
$14,775
$15,513
$16,289
$17,103
$17,959
$18,856
$19,799
$20,789
$21,829
$22,920
$24,066
$25,270
$26,533
$27,860
$29,253
$30,715
$32,251
Month 1Month 24
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The Power of Compounding in Trading

Compounding is often called the "eighth wonder of the world." In trading, it means reinvesting your profits so that each subsequent gain is calculated on a larger balance.

Example: 5% Monthly Returns

Starting with $10,000 and earning 5% per month:

  • After 12 months: $17,959 (79.6% total return)
  • After 24 months: $32,251 (222.5% total return)
  • After 36 months: $57,918 (479.2% total return)

Without compounding (simple interest), 5% monthly on $10,000 would only yield $16,000 after 12 months.

Realistic Expectations

While compounding calculators can show impressive numbers, it's important to set realistic return expectations:

  • Professional hedge funds average 10-15% annually
  • Consistently profitable retail traders may average 2-5% monthly
  • Returns above 10% monthly are rarely sustainable long-term
  • Drawdown periods will interrupt compounding