How compounding works
When you reinvest your profits, each new gain is calculated on a bigger balance. Over time the growth curve bends upward:
Balance after n periods = Start × (1 + Rate)ⁿ
With optional deposits, the calculator adds the deposit at the end of every period and keeps compounding.
A realistic way to use it
Small, steady numbers compound into large ones, which is exactly why unrealistic numbers are dangerous. 5% a month turns $1,000 into about $1,800 in a year and $3,200 in two years. 20% a month would turn it into almost $9,000 in a year, but very few traders anywhere sustain returns like that, and chasing them usually means taking too much risk.
Use the calculator to set goals you can actually reach, and remember that real results come with losing months. Try a negative rate too, to see how quickly a losing strategy drains an account.
Risk, reward, ratio and break-even win rate. Free, no sign-up.
Open the risk reward calculatorFrequently asked questions
What is a good monthly return for a trader?
There is no guaranteed number. Many professional funds aim for something like 10% to 20% a year. Anyone promising consistent double-digit monthly returns is taking big risks or not telling the truth.
Should I compound per trade or per month?
Per-trade compounding means your position size grows after wins and shrinks after losses, which is what happens naturally if you risk a fixed percentage of your current balance. Monthly is easier to plan with.
Results are estimates for education and planning. Broker contract sizes, fees and margin rules differ, so always confirm on your platform before you trade.