Forex compounding calculator
Project how a trading balance could grow when gains are reinvested, with its own compounding schedule and optional regular additions.
$268.24
$1,000.00
26.8%
26.82%
2.9 years
Breakdown
| Period | Gained | Gained so far | Balance |
|---|---|---|---|
| Period 1 | $20.00 | $20.00 | $1,020.00 |
| Period 2 | $20.40 | $40.40 | $1,040.40 |
| Period 3 | $20.81 | $61.21 | $1,061.21 |
| Period 4 | $21.22 | $82.43 | $1,082.43 |
| Period 5 | $21.65 | $104.08 | $1,104.08 |
| Period 6 | $22.08 | $126.16 | $1,126.16 |
| Period 7 | $22.52 | $148.69 | $1,148.69 |
| Period 8 | $22.97 | $171.66 | $1,171.66 |
| Period 9 | $23.43 | $195.09 | $1,195.09 |
| Period 10 | $23.90 | $218.99 | $1,218.99 |
| Period 11 | $24.38 | $243.37 | $1,243.37 |
| Period 12 | $24.87 | $268.24 | $1,268.24 |
Gains are added to the balance at the end of each compounding period, and the regular addition is spread evenly across those periods. With more than 400 periods the breakdown switches to yearly. A steady return is an assumption, not a promise, and this is not financial advice. Choosing a currency only changes how amounts are shown.
How forex compounding works
Balance = P × (1 + r × p ÷ n)N
P is the starting balance. r is your return for one period as a decimal, p is how many of those periods fit in a year, n is how many times a year gains are added to the balance, and N is the total number of compounding periods. When the return period and the compounding period match, p and n cancel and the formula becomes P × (1 + r)N.
Example: 1,000 earning 2% a month, compounded monthly for 12 months, becomes 1,000 × 1.0212, about 1,268.
Regular additions are spread evenly across the compounding periods and added at the end of each one.
About currency trading and risk
Forex trading means exchanging one currency for another in a worldwide market that runs around the clock. Prices move constantly, and many traders use leverage, which means borrowing to take a larger position. Leverage magnifies losses as well as gains, and in some cases you can lose more than you put in.
Regulators in several countries require brokers to warn that most retail accounts lose money. A fixed return every period, which is what this calculator assumes, is a way to explore the math of compounding. It is not a forecast of what trading will deliver.
The currency you pick here only changes how amounts are labeled. It does not convert money or use exchange rates. This is not financial advice, so for decisions about your money, speak with a qualified adviser.
See also: Compound interest, Periodic growth, Savings goal.