Project trading account growth by reinvesting a fixed percentage gain per trade or period over multiple compounding rounds.
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Trading
Calculate how a trading account grows when you reinvest a fixed percentage gain per trade or period over multiple compounding rounds. See the power of compounding applied to active trading.
If you earn 2% per trade and reinvest the full balance, each subsequent trade is on a larger base. Over 50 trades, a 10,000 account grows to 10,000 × 1.02⁵⁰ — substantially more than 50 × 2% = 100% simple return.
This illustrates the mathematical power of compounding but does not account for the reality that maintaining a consistent win rate with consistent position sizing is extremely difficult in practice.
Simple geometric compounding.
End Balance = Start × (1 + gain%)ⁿ
gain% = percentage gain per period as a decimal, n = number of periods.
Assumes every period produces the same gain, which is unrealistic in live trading. Does not account for losses, drawdowns, spreads, commissions, slippage, or taxes. Trading is inherently risky and most retail traders lose money.
Frequently asked questions
No. Markets are unpredictable and no trader wins every trade at the same rate. This calculator shows the mathematical potential of compounding, not a realistic trading outcome. Use it for goal-setting and scenario analysis, not performance prediction.
Losses are asymmetric: a 10% loss requires an 11.1% gain to recover. Even a small number of losing periods can significantly reduce compound growth. This calculator assumes no losses — real trading includes drawdowns.
Most risk management frameworks recommend risking only 1–2% of your account per trade. Compounding the full balance means every loss hits harder. Consider compounding only a portion of gains.
The formula applies to any compounding scenario — forex, stocks, crypto, or any other market. The gain-per-period assumption is what varies by market and strategy.
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