Compounding means each period's return is earned on the balance that includes earlier returns. This calculator shows the arithmetic for a fixed return you choose. It exists to show how quickly small assumptions grow into large numbers, and how unlikely steady returns are in trading. It does not suggest any return is achievable.
Compound Growth Calculator
| Period | Balance |
|---|---|
| 1 | 1,020.00 |
| 2 | 1,040.40 |
| 3 | 1,061.21 |
| 4 | 1,082.43 |
| 5 | 1,104.08 |
| 6 | 1,126.16 |
| 7 | 1,148.69 |
| 8 | 1,171.66 |
| 9 | 1,195.09 |
| 10 | 1,218.99 |
| 11 | 1,243.37 |
| 12 | 1,268.24 |
This applies a fixed return to every period. Real trading returns are not steady and can be negative, and compounding magnifies losses as well as gains. Treat the output as arithmetic, not an expectation.
How to Use This Tool
- Enter a starting balance and the return per period, such as per month.
- Enter the number of periods and any amount added each period.
- Read the final balance and compare it with the total you put in. Then try a negative return to see compounding work against you.
How It Works
Each period the balance is multiplied by (1 plus the return as a decimal), and any added funds are included afterwards. Over n periods a start balance S becomes S × (1 + r)^n before additions. Real trading returns vary from period to period, losses compound too, and a long run of steady positive returns is the exception, not the rule. Be wary of any advert that quotes compounded figures.
Limits
This tool uses only the figures you enter. It does not know your broker, your fees or your market, and its output is not advice or a prediction. Test any plan on a demo account first, and read your platform's own terms.
Frequently Asked Questions
Can I expect these returns?
No. The tool applies the rate you type to every period. Actual results vary and can be negative.
Why does a small change in the rate change the result so much?
Because the rate is applied repeatedly to a growing balance, so the effect builds over the periods.
Does it include fees and tax?
No. Deductions would reduce the figures.