Compounding Calculator

Compounding turns small monthly returns into life-changing accounts — over multi-year horizons. Most retail traders quit before compounding helps because they expect linear month-over-month gains. This calculator shows the realistic curve.

Compound formula: balance × (1 + monthly_return)^months
5% / month for 12 months = 79.6% annual
10% / month for 12 months = 213% annual
Most prop traders sustain 3-7% / month long-term, NOT the 30%+ marketed

Starting balance ($) Monthly return (%) Time horizon (months) Apply 30% drawdown stress test

Final balance (best case)—

Total return %—

After drawdown stress—

Annualized rate—

Monthly profit at month ${months}—

What's Realistic?

Don't trust YouTube traders showing 50% monthly returns. The MyFxBook leaderboard top 100 averages around 8-15% monthly over 1+ year track records. Prop firms enforce daily/max DD that caps the high-volatility strategies needed to chase 30%+ monthly.

Drawdown Compounding Trap

A -20% month requires +25% the next month to break even. -50% requires +100%. Drawdowns are exponentially harder to recover than gains. This calculator's stress test applies a one-month -30% setback and shows the recovery time.