Forex Compounding Calculator (With the Honest Downside)
Compounding projections are easy to make and easy to believe. This one shows the upside curve and, beside it, exactly what the same maths does to a losing run, because both are the same equation.
A compounding calculator projects a balance if a fixed percentage gain repeats every period. This one shows that curve and, beside it, the same maths applied to a losing run and to a realistic mixed sequence. Down 20% needs +25% to recover; down 50% needs +100%. It is arithmetic, not a plan or an income projection.
Compounding calculator
What this calculates
Enter a starting balance, a gain per period and a number of periods, and you get the compounded balance, the total gain, and a table of the first periods. That is what every compounding calculator does.
And the part the others leave out
Compounding is symmetrical. The same percentage applied the other way shrinks the account just as fast, and losses need a bigger percentage to undo than the percentage that caused them: down 20% needs +25% to get back, down 50% needs +100%. The panel under the result applies your inputs to a losing run of the same length, and to a realistic mixed sequence where a fixed percentage is not won every single period.
A projection is a hypothesis about a skill you may not have yet. Chart Bound is where you build the skill, free, with no money at risk.
Play free, no signup →How to use it sensibly
- Use a gain per period you have actually measured over a large sample - see the expectancy calculator.
- Model the drawdown as well: the drawdown recovery calculator shows the gain needed to recover, and the risk of ruin calculator shows whether the run survives.
- Remember withdrawals, costs and taxes, none of which appear in a compounding curve.
Why the curve looks so good
Exponential growth looks unbelievable because it is: a modest percentage repeated enough times produces a number that does not resemble any real trading account. The shape is real, but every period of it depends on a result that has to be earned again, which is why the honest version of this tool shows both directions.
Frequently asked questions
Is this compounding calculator free?
Yes. It runs entirely in your browser with no signup.
Can I really compound my account like this?
The arithmetic is correct; the assumption is not. It assumes the same gain every period with no losing periods, which no trading account does. Use it to understand the maths, not to plan income.
Why show losing runs?
Because it is the same equation. A calculator that only shows the upside is only showing half the maths.
What gain per period should I enter?
Whatever your own records show over a large, honestly logged sample. If you do not have that yet, the honest answer is that you cannot know it.
Embed this calculator on your site
Free to use, on any site, with no signup: paste this one line where you want the tool to appear. It loads our hosted version, so it stays up to date, and the link under it credits back to this page.
420×620 by default and it scales down to fit a narrower column. Please keep the attribution link.
Keep learning
A projection is a hypothesis about a skill you may not have yet. Chart Bound is where you build the skill, free, with no money at risk.
Play free, no signup →