Compound Growth Calculator

Why Compounding is Your Greatest Asset

In trading, compounding transforms small, consistent monthly returns into exponential wealth. Each month's gains are reinvested, generating returns on returns. Over years, this exponential curve dramatically outpaces linear growth.

Key insight: A 5% monthly return compounds to 79.6% annually—far exceeding what simple interest would deliver.

Realistic Monthly Return Expectations

• 3-5% monthly: Excellent and sustainable for disciplined traders
• 5-8% monthly: Outstanding—requires strong edge and risk management
• 10%+ monthly: Extremely rare and typically unsustainable

Focus on consistency over perfection. A steady 5% monthly beats chasing 20% with losses.

Why Consistency Beats Big Wins

A trader with 5% monthly returns over 5 years grows $10K to $325K. One with erratic 20% followed by -15% months often ends with less.

The math: Compounding rewards reliability and punishes volatility. Building a repeatable system is more valuable than chasing home runs.

Funded Account Growth Strategies

• Reinvest all gains: Let compound growth work for you (shown in green line)
• Add monthly deposits: Inject fresh capital to accelerate growth
• Scale position size: As account grows, increase risk per trade proportionally
• Adjust withdrawal strategy: Balance living expenses with keeping gains invested