Compound Calculator

The Power of Compounding in Trading

Compounding is reinvesting profits to generate exponential growth. A 5% monthly return doesn't just add up — it multiplies. $10,000 at 5% monthly becomes $17,959 after 12 months, not $16,000.

Realistic Monthly Returns

• 2-3% — Conservative, achievable consistently with good risk management
• 5-10% — Aggressive but possible for skilled traders
• 10%+ — Unsustainable long-term. Be skeptical of anyone claiming this consistently

Withdrawal Strategy

Many traders withdraw a fixed amount monthly to cover living expenses. This reduces the compounding effect but provides income. The key is to keep withdrawals below your average monthly return so the account continues to grow.