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Compounding Calculator

Compounding Calculator

Growth is compounded daily. Useful for tracking target growth over time.

Forex Compounding Calculator ๐Ÿงฎ

Compounding is the key to exponential account growth. Use our Forex Compounding Calculator to project your potential profit over time based on your initial balance, expected return rate, and period.

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How to Use the Compounding Calculator

  1. Enter Starting Balance โ€“ Your initial trading capital.
  2. Set Return Rate (%) โ€“ Your expected daily, weekly, or monthly profit rate.
  3. Select Time Period โ€“ Choose how long to project the compounding growth (e.g. 30 days, 6 months, 1 year).
  4. Click Calculate โ€“ The calculator will display the growth projection and final balance.

๐Ÿ’ก Tip: Even small, consistent returns can grow significantly over time with the power of compounding.

Why Compounding Matters in Trading

Compounding is when you reinvest your profits so that future gains are earned on both the original capital and the accumulated profits. Over time, this creates exponential growth โ€” often underestimated by new traders.

Many professional traders aim for small but consistent gains (e.g., 1% per day). Over months or years, this strategy can lead to impressive growth.

Example Calculation

Starting Balance: $1,000
Daily Return: 2%
Period: 30 days
โžก๏ธ Final Balance โ‰ˆ $1,811
Total profit โ‰ˆ $811 in one month just by compounding daily gains.

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Frequently Asked Questions (FAQ)

What is compounding?

Compounding is the process of reinvesting profits to generate earnings on both the original capital and the accumulated gains.

Is compounding realistic in forex?

Yes, but it depends on discipline, consistency, and realistic profit targets. Unrealistic compounding plans (e.g., 10% per day) are not sustainable.

Can this calculator be used for crypto or stocks?

Yes. It works for any investment or trading strategy that involves reinvestment of profits.

External References