Project how your trading account grows with consistent monthly returns and compounding
Import your actual trades and see how your account compounds over time with real data.
Sign Up FreeThe Power of Compounding -- Compounding is what happens when your returns generate their own returns. A 5% monthly return does not simply add up to 60% per year. Because each month's profit increases the base for the next month, a 5% monthly return actually compounds to roughly 80% annually. Over multiple years the difference between simple and compound growth becomes enormous. This is why even modest, consistent monthly gains can transform an account over time.
Realistic Expectations -- This calculator assumes a perfectly consistent monthly return, which does not happen in real trading. Markets go through drawdown periods, losing streaks, and volatility shifts. Most profitable traders average their target returns over time rather than hitting them every single month. Use this tool to understand the mathematical potential of compounding, but plan for variance. A realistic approach is to use a conservative monthly return estimate -- closer to your worst-case average than your best months.
Profit Splits and Prop Firms -- If you trade with a prop firm, you typically keep only a portion of your profits (e.g. 80%). This directly affects compounding because the 20% the firm takes never gets reinvested into your account. A trader making 5% gross monthly returns with an 80% split effectively compounds at 4% per month on their account balance. Over 24 months the difference between 100% and 80% profit split is substantial. Factor this in when evaluating whether a firm's split is worth the access to capital.
Consistency Over Big Wins -- The math of compounding rewards consistency far more than occasional large gains. A trader who makes 3% every month for a year will outperform a trader who makes 10% in three months and breaks even in the other nine. Drawdowns are especially destructive to compounding because you need a larger percentage gain to recover from a percentage loss (a 20% loss requires a 25% gain to break even). Protecting capital and maintaining steady returns is the foundation of long-term compound growth.