About the Trading Compounding Calculator
See how a trading account grows when returns compound: a percentage gain per day, week, month or trade, with money added or withdrawn along the way. The table shows the balance after every period.
The drawdown section shows how big a gain you need to recover from a loss, which is always more than the loss itself.
How it works
Each period the balance grows by the return percentage, and then the deposit is added or the withdrawal taken out. 1% a period on $1,000 for 30 periods gives $1,347.85, not $1,300, because each gain is earned on the gains before it.
Recovering from a drawdown needs the loss divided by what's left: after a 20% loss you need 25% to get back, after 50% you need 100%. That's why limiting losses matters more than chasing big wins.
Assumptions and limits
- The same return every period is an illustration; real trading returns vary and include losing periods.
- Fees and taxes aren't included.
- For planning only, not financial advice.
Worked examples
1% a day for a month
$1,000 at 1% for 30 trading days becomes $1,347.85.
10% a month for a year
$1,000 at 10% a month for 12 months becomes $3,138.43, an illustration of why such returns are rare.
Drawdown
A 10% loss needs an 11.11% gain to recover; a 90% loss needs 900%.
How to use the Trading Compounding Calculator
- Enter the starting balance. And the return per period.
- Set periods and deposits. Add or withdraw each period.
- Read the balance. Period by period.
Frequently asked questions
How does compounding work in trading?
When profits stay in the account, the next percentage gain is earned on a bigger balance. Over many periods this adds up to much more than the same percentage earned on the starting amount alone.
Why do I need more than 20% to recover a 20% loss?
After losing 20% of $1,000 you have $800, and getting back to $1,000 means gaining $200 on $800, which is 25%. The deeper the loss, the faster the recovery needed grows.
Is 1% a day realistic?
Consistently making 1% every trading day is extremely rare, even for professionals. Use the calculator to see what a target implies, and remember real results include losing days.
When are deposits added?
After each period's growth. A deposit made at the end of a period starts earning from the next period, which matches adding money to the account after a day's or month's trading.
Can I model regular withdrawals?
Yes. Choose Withdraw money and enter the amount taken out each period. If withdrawals are larger than the gains, the balance shrinks, and it stops at zero rather than going negative.
This tool runs entirely in your browser. What you enter or upload stays on your device and is never sent to our servers.