Compounding Calculator
A steady X% per period, rolled N periods — what does the account become? Every period, itemized.
What it is
Compounding rolls each period's profit into the principal: a modest 1% daily gain becomes about 7.3x over 200 trading days, and the gap between 2% and 3% per period widens into 7.2x vs 19.2x after 100 periods. The compounding calculator shows you two things: how far a steady rate can carry an account, and how time amplifies tiny differences in rate. It is also a mirror for risk education — compounding losses is perfectly symmetric: losing 2% per period for 100 periods leaves 13%. That is exactly why single-trade risk belongs at a small fixed fraction.
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A steady gain per period, rolled N periods — what is the result?
Enter the starting balance, gain per period and the periods — compounding results appear instantly, in your browser.
Ending balance
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Total profit
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Total return
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Enter the balance, gain and periods to see the compounding result.
How to use it
- Enter the starting balance;
- Enter the gain per period (%): use your backtested or live average per-period return — not your best streak;
- Enter the number of periods: in your own period unit (daily/weekly/monthly — the rate and the count must share the same unit);
- Read the result: ending balance, total return and the per-period table.
The formula
Compounding is "balance × (1 + rate)" every period; N periods is the Nth power.
The table assumes a fixed per-period rate with all profits reinvested (without reinvesting it is simple interest — the long-run gap is huge). Real trading has drawdowns and losing periods; treat results as planning references only.
Worked example
Starting 10,000 USD, 2% per period, 20 periods:
- Ending balance = 10,000 × 1.02^20 = 14,859.47 USD;
- Total profit = 4,859.47 USD (+48.6%);
- At 3% per period: 10,000 × 1.03^20 = 18,061.11 USD — a two-point gap in rate becomes 3,200 USD over the same 20 periods.
Over the same 20 periods, 2% vs 3% per period compounds into +48.6% vs +80.6% — consistency beats bursts.
FAQ
Q What gain per period should I enter?
Your backtested or live average per-period return, and err on the low side: typing 5% instead of 2% is easy, but a distorted assumption makes the whole plan a castle in the air. A robust habit is the average excluding your best few trades.
Q Daily, weekly or monthly rate?
Any of them, but keep the units matched: the rate's period must correspond to the period count (daily rate with trading days, monthly rate with months). Never multiply a monthly rate by 30 to get a daily one — 1% per month is about 0.033% per day compounded, not 0.033% × 30.
Q Why does the per-period profit grow in the table?
Because the base grows: the same 2% earns 200 on 10k but 1,000 on 50k. That is the shape of compounding — slow, then fast — which is why surviving long matters more than moving fast.
Q How does this work with the Position Size Calculator?
The compounding calculator answers "how far can a steady X% per period go"; the position size calculator answers "how do I keep every loss small enough not to break the rhythm" — with single-trade risk at 1%–2%, the rate assumption has a chance to hold long-term.
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Download Camovia TrayResults are for reference only and do not constitute investment advice. A fixed gain per period is a planning assumption; real trading has losing periods and drawdowns, and past returns do not indicate future performance.