Compounding Calculator
Project account growth at a steady monthly return. Use it to set realistic expectations — consistent, modest compounding outperforms the pursuit of large, erratic gains.
Final Balance
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Total Gain
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Growth
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| Month | Balance | Gain That Month |
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Projections assume a constant return with no losing months — real trading returns vary and include drawdowns. Treat this as a planning illustration, not a forecast.
A Realistic Perspective
Compounding math is seductive: a steady few percent per month becomes a large number over a few years. The catch is the word steady. Real returns are lumpy — winning months, losing months, and drawdowns that reset the curve. A single bad month at high risk can undo many good ones.
The practical takeaway is not "aim for a high monthly return." It is "protect the downside so compounding has a chance to work." That is what risk management and positive expectancy actually buy you.
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