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Compounding calculator

Project a monthly return forward and watch how much of the final balance is your own deposits versus actual compounding. The split is usually not what people expect.

Starting point
Optional — added at the end of each month.
Assumptions
Equivalent to 26.8% a year
3.0 years
Final balance
20,398.87 USD
After 36 months at 2.0% a month
Total deposited
Initial + monthly deposits
10,000.00 USD
Profit from compounding
10,398.87 USD
Total return
on money deposited
+103.99%
Annualised (CAGR)
26.82%
Average profit / month
288.86 USD
Read this before believing the number
This curve assumes the same positive return every single month, which no trading account produces. One −20% month resets years of it, and the months after that one compound from the lower base. Use the table to compare rates against each other — not to plan a life around any single row of it.
Month by month
MonthBalanceDepositedProfit
310,612.08 USD10,000.00 USD612.08 USD
611,261.62 USD10,000.00 USD1,261.62 USD
911,950.93 USD10,000.00 USD1,950.93 USD
1212,682.42 USD10,000.00 USD2,682.42 USD
1513,458.68 USD10,000.00 USD3,458.68 USD
1814,282.46 USD10,000.00 USD4,282.46 USD
2115,156.66 USD10,000.00 USD5,156.66 USD
2416,084.37 USD10,000.00 USD6,084.37 USD
2717,068.86 USD10,000.00 USD7,068.86 USD
3018,113.62 USD10,000.00 USD8,113.62 USD
3319,222.31 USD10,000.00 USD9,222.31 USD
3620,398.87 USD10,000.00 USD10,398.87 USD
Balances are end of month, after that month's return and deposit. Past 24 months only every third month is listed, plus the final one.
What an annual target costs per month
Annual targetMonthly return neededBalance after 12 months
10%0.80%11,000.00 USD
25%1.88%12,500.00 USD
50%3.44%15,000.00 USD
100%5.95%20,000.00 USD
200%9.59%30,000.00 USD
Compounded monthly from your starting balance and deposit, in USD. A target only doubles in difficulty on paper — in practice the monthly return needed above is what a strategy has to hit after costs, in every kind of market.
How it works

Understanding the numbers

How does compounding work here?

Each month the balance earns the monthly return, then the deposit lands. A deposit made in month N therefore earns its first return in month N+1 — the conservative convention, and the one stated so the numbers are reproducible.

Monthly versus annual return

They are the same number in different clothes: annual = (1 + monthly)¹² − 1. 2% a month is 26.8% a year, not 24%. The two sliders stay locked together so you cannot accidentally quote a rate you did not mean.

What is a realistic monthly return?

Consistently positive months are rarer than compounding tables imply. Anything above roughly 5% a month sustained over years is exceptional; this tool exists to show what a rate implies, not to suggest one is achievable.

Why the deposits-versus-profit split matters

On short horizons and with regular deposits, most of the final balance is money you paid in. Compounding only dominates over long horizons — seeing where the crossover falls is the point of the table.

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