How to use this calculator
- Enter starting capital, account currency and a daily, weekly, monthly or yearly period.
- Choose an assumed return for that period, the number of periods and any recurring deposit.
- Select deposit timing. Compare the hypothetical balance, contributed capital and gain or loss separately.
How this forex compounding calculator works
Without deposits, the ending balance is starting capital × (1 + return per period) raised to the number of periods. A 2% return is entered as 2 and applied as 0.02. Each period starts from the preceding unrounded balance.
For end-of-period deposits, growth is calculated first and the deposit is added afterward. Start-of-period deposits are added before that period’s assumed return. The table makes the difference visible.
An example with gains, losses and contributions
Starting with USD 1,000 and applying a constant 2% monthly return for 12 months produces about USD 1,268.24 without deposits. That is a mathematical illustration, not a realistic promise of smooth monthly trading returns.
| Scenario | Assumption | Hypothetical ending balance |
|---|---|---|
| Positive return | 2% monthly, 12 periods, no deposits | USD 1,268.24 |
| Repeated losses | −2% monthly, 12 periods, no deposits | USD 784.72 |
| Deposits only | 0%, 12 periods, USD 100 at period end | USD 2,200.00 |
- Total contributions include starting capital plus every recurring deposit.
- Hypothetical gain or loss equals ending balance minus total contributions.
- A contribution is new money you add, not a return earned by the strategy.
Match the return to the compounding frequency
The selected frequency defines one period. At 2% monthly, 12 periods mean 12 months with 12 applications of 2%. At 2% weekly, the same inputs mean 12 weeks; they are not an annual-rate conversion.
Changing the frequency label alone does not alter the result when the rate and number of periods stay the same. To model one year of weekly assumptions, use the weekly return and an appropriate number of weeks. Do not enter an annual rate as though it were weekly.
For an annual-interest comparison rather than a trading-return scenario, see the Investor.gov compound interest calculator. Its inputs and rate conventions differ from this per-period model.
Why compounding losses matter
A 20% loss followed by a 20% gain leaves the account below its starting value. The gain applies to a smaller balance. Trading also involves changing exposure, irregular returns, costs and possible withdrawals that a fixed-rate illustration does not reproduce.
This model allows returns from −100% to +100% per period and up to 600 whole periods. These are calculation limits, not plausible-return ranges. Large scenarios that exceed the display limit are rejected instead of showing an infinite balance.
Keep scenario modelling separate from trade execution. Use the forex profit calculator for a specific entry and exit, and learn about the risks in our auto trading guide.
- Related reading: how to assess auto trading.
Frequently asked questions
Does this predict my future trading balance?
No. It applies a fixed hypothetical return to your inputs. Real returns vary, losses occur, and costs, withdrawals or changing exposure can materially change the outcome.
Can I model losses instead of growth?
Yes. Enter a negative return per period, down to −100%. The chart then shows the balance declining under that assumption, alongside any recurring contributions.
Are deposits counted as profit?
No. Total contributions include starting capital and deposits. Hypothetical gain or loss is shown separately as the ending balance minus those contributions.