How to Use the Forex Compounding Calculator

Use the calculator to model how a trading balance could change when an assumed return is compounded over a chosen number of periods. Enter your starting capital and target capital, then choose the time horizon and whether each period represents days, weeks, months, or years.

Set the assumed return per period and choose how often gains are compounded. Add any planned deposits or withdrawals and select when those cash flows occur. The calculator updates the equity curve, growth table, target status, and risk estimates automatically.

Forex Compounding Formula and Example

Without deposits or withdrawals, the basic calculation is:

Ending balance = starting balance × (1 + return per period) ^ number of periods

For example, $1,000 compounded at an assumed 5% per period for 12 periods becomes approximately $1,795.86. The calculator can extend this example by adding cash flows, changing the compounding frequency, or comparing scenarios.

What the Results Mean

Ending equity is the projected balance at the end of the selected horizon. Trading P/L isolates modeled gains or losses from deposits and withdrawals. Annualized return converts the period assumption into a yearly equivalent, while target status shows whether the selected goal is reached. Modeled drawdown and risk outputs describe the scenario entered, not a guaranteed future result.

The calculator illustrates mathematical assumptions and does not predict trading performance. Actual returns can vary or be negative, and losses, spreads, commissions, slippage, deposits, and withdrawals can materially change the outcome.