Forex Compounding Calculator

Compounding means each month's gain is added to the balance, so the next month's percentage is earned on a larger amount. Enter a starting balance, a monthly return and the number of months, plus any amount you add each month, to see the balance month by month.

1. Starting balance ($):

2. Return per month (%):

3. Number of months:

4. Added each month ($):

Negative = a monthly withdrawal.

Balance by month
Month	Gain	Balance
1	$50.00	$1,050.00
2	$52.50	$1,102.50
3	$55.13	$1,157.63
4	$57.88	$1,215.51
5	$60.78	$1,276.28
6	$63.81	$1,340.10
7	$67.00	$1,407.10
8	$70.36	$1,477.46
9	$73.87	$1,551.33
10	$77.57	$1,628.89
11	$81.44	$1,710.34
12	$85.52	$1,795.86

Balance after 12 months

$1,795.86

Starting balance + deposits:$1,000.00

Total trading gain:$795.86

Growth on starting balance:79.6%

Assumes the same return every month with nothing withdrawn. Real trading returns vary from month to month and include losing months; this is arithmetic, not a forecast.

Trading from India or Nigeria? Check the rules first

India

Exness, XM, Vantage Markets, IC Markets and Forex4you are named on the Reserve Bank of India's Alert List of entities not authorised to deal in forex or to operate electronic trading platforms (ETPs) for forex transactions (Alert List updated as on November 19, 2025). Source: Reserve Bank of India: Alert List (updated as on November 19, 2025); Outlook Money: RBI's updated Alert List
Markets4you is the new name of Forex4you (rebrand reported in 2024). The RBI Alert List names Forex4you (forex4you.com); it does not list the name Markets4you. Source: Reserve Bank of India: Alert List (updated as on November 19, 2025); Finance Magnates: Forex4you becomes Markets4you
Under FEMA, resident persons may undertake forex transactions only with authorised persons and for permitted purposes; electronic forex transactions must be undertaken only on ETPs authorised by the RBI or on recognised stock exchanges (NSE, BSE, MSE). Residents who trade forex on unauthorised ETPs are liable to penal action under FEMA. Source: Reserve Bank of India: FAQs on unauthorised forex trading platforms
The RBI says the Alert List is not exhaustive: an entity that is not on it should not be assumed to be authorised by the RBI. Source: Reserve Bank of India: FAQs on unauthorised forex trading platforms

Nigeria

The Securities and Exchange Commission (SEC) Nigeria says that under the Investments and Securities Act (ISA) 2025 it is an offence to operate an online foreign exchange (forex) trading platform in Nigeria without SEC registration. Source: FinancialEDGE: SEC warns unregistered digital and forex trading platforms now a crime under ISA 2025; Gazette Nigeria: ISA 2025 bans unregistered digital asset exchanges, online forex platforms

The calculators only do arithmetic; they do not mean any broker is available, licensed or legal where you live.

Compounding formula

Balance after n months = Start × (1 + r)ⁿ (no deposits)

With deposits: Balance(month) = Balance(previous) × (1 + r) + Deposit

r = monthly return ÷ 100

The calculator applies the return to the balance at the start of each month and then adds the deposit, so a deposit starts earning the following month.

A steady monthly return is an assumption, not something trading delivers. Real accounts have losing months, and a single drawdown can undo many months of compounding; check the drawdown and risk of ruin calculators alongside this one.

Worked examples

$1,000 at 5% a month for 12 months

Balance = $1,000 × 1.05¹²
1.05¹² = 1.7959
Balance = $1,795.86

Ends at $1,795.86: a gain of $795.86 (79.6%).

$5,000 at 3% a month, +$200 a month, 24 months

Each month: balance × 1.03 + $200
After 12 months: $9,967.21
After 24 months: $17,049.26
Paid in: $5,000 + 24 × $200 = $9,800

Ends at $17,049.26: $7,249.26 of it is trading gain.

$10,000 at 2% a month for 36 months

Balance = $10,000 × 1.02³⁶
1.02³⁶ = 2.0399
Balance = $20,398.87

The account roughly doubles in 3 years at 2% a month.

Figures assume the same return every month and nothing withdrawn. They show the arithmetic of compounding, not an expected result.

Frequently asked questions

How do I calculate compound growth on a trading account?

Multiply the balance by (1 + monthly return) once for every month: $1,000 at 5% a month for 12 months is $1,000 × 1.05¹² = $1,795.86. With monthly deposits, add the deposit after each month's growth.

Is 10% a month realistic in forex?

Treat it as very unlikely to last. 10% a month compounds to more than 3 times the balance in a year, and strategies that aim for it usually take large risks per trade, which raises the chance of a deep drawdown. Use the risk of ruin calculator to see what the risk per trade implies.

What is the rule of 72?

A shortcut for doubling time: 72 ÷ the return per period ≈ periods to double. At 2% a month, 72 ÷ 2 = 36 months, which matches the exact figure of about 35 months.

Should I withdraw profits or compound them?

That is a personal choice. Compounding grows the position size with the account, so losses grow too; withdrawing locks in part of the gain. Enter a negative monthly amount in the calculator to model regular withdrawals.