Compound Calculator

How Compound Returns Grow Your Account

Compounding is the process where your profits generate their own profits. In forex, this means increasing position sizes as your account grows. A $10,000 account earning 2% per trade doesn't just make $200 per trade — over 50 trades with reinvestment, it grows to $26,916.

The math is exponential: $10,000 × 1.02^50 = $26,915.88. That's 2.69× growth from 50 trades at 2% each. This is why professional traders focus on consistency over home runs — many small winning trades compound into large account growth.

Growth Milestones

The Rule of 72

A quick way to estimate doubling time: divide 72 by your average return percentage. At 2% per trade: 72/2 = 36 trades to double. At 5%: 72/5 = 14-15 trades. At 1%: 72 trades. This rule works because ln(2) / ln(1+r) ≈ 0.693/r ≈ 72/(r×100) for small r.

Realistic Expectations

These projections assume every trade is a winner of exactly the same size — reality includes losses. A trader with 40% win rate and 1:2 R:R still has a positive expectancy of 0.20, meaning the average trade returns 0.4% of risked capital. Use the expectancy calculator to find your real average return before plugging it into the compound calculator.

Frequently Asked Questions

How does compounding work in forex?

Compounding means reinvesting profits so position sizes grow with your account. A $10,000 account earning 2% per trade with reinvestment grows to $26,916 after 50 trades. Without compounding (flat 2% on $10,000), you'd have only $20,000.

How long to double your account?

At 2% average return per trade: approximately 35 trades. At 5%: 15 trades. At 1%: 70 trades. The Rule of 72 gives a close estimate: divide 72 by your percentage return — 72 / 2 = 36 trades to double.

What is a realistic return per trade?

Professional traders typically target 1-3% return on risked capital. An expectancy of 0.20 with 2% risk per trade gives 0.4% average return per trade. Over hundreds of trades this compounds meaningfully.

Why does compounding accelerate over time?

Each gain is calculated on the full balance including prior gains. Trade 1 on $10,000 at 2% earns $200. Trade 50 on $26,916 earns $538. This exponential curve means the majority of growth happens in the later stages.