Compounding
Compounding means profits are added to the balance and the next trade is sized on the larger amount. This calculator shows the effect over months. It is an illustration; real returns are not steady.
Rates for pegged currencies are fixed. Edit the rate for others.
Compounding
Growth of an account at a steady monthly return. An illustration, not a forecast.
Ending balance–
Total gain–
How to use it
- Enter your starting balance and an assumed monthly return.
- Set the number of months and any monthly deposit.
- Read the ending balance and the total gain over the period.
Questions, answered plainly.
Is a 3% monthly return realistic?
Some months will be negative. Use the calculator to understand compounding, not to plan income.
Does it include losses?
Only through the average you enter. A 3% average can hide a -10% month.
Why does the gain grow faster later?
Because each month's return is earned on a bigger balance; that is the compounding effect.