FameOrbitA $10,000 account with a 5% monthly return over 12 months compounds to approximately $17,959.
Model account growth with compound returns.
Explore how a repeated percentage return and optional contributions change a starting balance over multiple periods. Free, browser-based calculator.
Runs entirely in your browser — nothing uploaded to servers
Compounding model
This is a mathematical projection, not a return forecast.
PROJECTED TOTALCalculated
17,958.56
Total deposited: 10,000.00Modelled growth: 7,958.56
How compounding is calculated
The calculator applies the entered periodic return to the running balance at the end of each period and adds the optional contribution. It uses the standard compound growth formula:
Total = Starting balance × (1 + r)^n + Contribution × ((1 + r)^n − 1) / r
Where r is the return per period as a decimal and n is the number of periods. When the return rate is zero, total = starting balance + (contribution × periods).
What this model does not include
This is a mathematical projection model. It does not account for taxes, trading fees, bid-ask spreads, losing periods, drawdowns, position sizing, withdrawals or any real-world trading condition. The same percentage return is applied to every period, which rarely reflects actual market behaviour.
How to use compounding projections sensibly
Compounding models are useful for building intuition about how returns accumulate over time and why consistency matters more than chasing high percentages. Use them to understand mathematics and test scenarios — not as forecasts of future performance. Market returns are not predictable and real accounts experience variance, drawdowns and changes in strategy.
Frequently asked questions
What is compounding in trading?
Compounding means reinvesting returns so that each period's gains are added to the base for the next calculation. Over many periods, this creates exponential growth curves rather than linear ones.
What does "return per period" mean?
It is the percentage gain assumed for each individual period — whether that is a day, week, month or trade. A 5% monthly return compounded over 12 months produces a very different result from a 5% annual return.
Can I use this for daily trading compound growth?
Yes. Set periods to the number of trading days and return per period to your target daily percentage. Remember that real daily returns vary significantly and losing days reduce the base.
Is this a realistic return forecast?
No. The calculator applies a fixed return every period, which is a simplification. Use it to understand the mathematics of compounding and to explore scenarios, not as a prediction of future account growth.