i What this calculator does
Shows what a fixed percentage gain does to a trading account when it is compounded per trade, per trading day, per week or per month. Enter the start balance, the gain, the number of periods and how much of each period's profit you reinvest, and it returns the ending balance, the total profit, how much compounding added over simple interest, the period at which the account doubles, and a milestone table. The Compound Growth Calculator on this site works in annual rates and years; this one works in the units traders actually think in.
The reality check matters more than the table. One percent a day sounds modest and compounds to about 1,100% a year; no fund, bank or trader produces that over years. The calculator flags any assumption that annualises above 100% so the arithmetic is not mistaken for a forecast.
A fixed gain per period is a mathematical assumption, not a trading result. Real returns vary, losing periods occur, and the figures here show what compounding would do if the assumption held. Not financial advice.
See also: Dividend Withholding Tax Calculator.
Frequently asked questions
Is 1% a day realistic in forex?
No. It compounds to roughly 1,100% a year. Professional traders and funds measure returns in tens of percent a year, with losing months. Use the calculator to see the arithmetic, then set a per-month figure you have actually achieved.
What is the difference between compounding per trade and per day?
Per trade applies the gain every trade, so the number of periods is your trade count. Per day applies it once per trading day regardless of how many trades. The maths is identical; only the meaning of a period changes.
Why is the compounded result so much higher than simple interest?
Because each period's gain is calculated on a balance that already includes earlier gains. Over few periods the difference is small; over hundreds it dominates.
What does the reinvestment percentage do?
It splits each period's profit between the account and withdrawals. At 100% everything compounds; at 50% half the profit is taken out each period and the account grows more slowly while you bank cash.
Does the calculator include losing trades?
Only if you enter a net figure. A strategy with 55% winners at 1.5R nets roughly 0.375R per trade; converted to a percentage of equity at your risk per trade, that is the gain to enter. The Profit Path Calculator does this conversion for you.
Is compounding taxed?
Trading profits are taxable when realised, as revenue or capital depending on how you trade. The table shows pre-tax growth.
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