Forex Compounding Calculator
Calculate your balance with reinvested forex returns. Include regular deposits and withdrawals.
CCO at Quadcode · 8+ years in dealing and market making
How to use this calculator
Enter your balance
Start with the amount in your trading account. Choose the currency you use for that account.
Set a return and a period
For example, 2% per month for 12 months. Use a net return after trading costs. You can also enter a negative return.
Read the result
See the ending balance and trading gain or loss. Move along the chart or open the table to check each period.
Ending balance
$1,268.24
12 months at 2% per month
- Trading gain / loss
- +$268.24
- Additional deposits
- $0.00
- Total withdrawn
- $0.00
Dashed line: a 0% return with the same scheduled deposits and withdrawals.
Scroll horizontally to see all columns
| Month | Opening | Deposit | Gain / loss | Withdrawal | Closing |
|---|
Amounts are in USD. Export CSV for the full table, including the starting balance.
Assumes the same net return each period. Actual returns vary and losses are possible. Taxes and currency conversion are excluded.
Calculation methodHow forex compounding works
Compounding means leaving returns in your account, so the next period’s result is calculated on the new balance. Gains increase that base; losses reduce it.
At 2% per month, $1,000 becomes $1,020 after one month. The next month’s 2% is $20.40, because it applies to $1,020. A fixed percentage is used to explain the calculation; real trading does not produce a fixed return.
A $1,000 example
12 months. A hypothetical 2% net return each month. No deposits or withdrawals.
Without compounding, each month earns $20 on the original $1,000. Reinvesting every month adds $28.24 over the same period.
The calculation
With no deposits or withdrawals, the formula is:
Final balance = P × (1 + r)n
P is your starting balance, r is the return per period as a decimal, and n is the number of periods. A 2% return means r = 0.02.
When you add or withdraw money
A beginning-of-period deposit is added before the return is calculated. An end-of-period deposit is added after the return. Withdrawals are then taken at the end of the period and capped at the available balance.
Trading gain or loss = ending balance + actual withdrawals − starting balance − additional deposits. Deposits are not counted as profit.
What the comparison shows
The dashed line uses the same scheduled deposits and withdrawals at a 0% return. Withdrawals are capped at the available balance in each scenario. The vertical axis follows the balances shown and may start above zero.
Precision and limits
The calculation keeps unrounded values between periods and displays amounts to two decimal places. It supports up to 1,200 periods, a return from −100% to 100% per period, and balances up to 1 trillion. Currency selection changes the unit of display; it does not convert amounts.
Last updated
Common questions
What is a forex compounding calculator?
It calculates how an account balance changes when the return for each period stays in the account. This tool also lets you add regular deposits and withdrawals, so you can separate trading gains from money you contribute.
Should I choose trading days, weeks or months?
Choose the period that matches your return assumption. Enter 2 with Months for 2% per month, or 2 with Trading days for 2% per trading day. These are very different scenarios. The calculator does not convert the rate between periods or assume a number of trading days per year.
Can I enter a negative return?
Yes. A negative percentage reduces the available balance each period. At −10% per period, $1,000 becomes $900, then $810. A loss of 100% removes that period’s active balance; later deposits can fund the account again.
Does the result include spread, commissions and swap?
There is no separate cost deduction. Enter a net return after all relevant trading costs. Using a gross return would overstate the result. Taxes are not included.
What happens if a withdrawal is larger than the balance?
The calculator takes only the available amount and shows a notice. Later periods continue, including any scheduled deposits. The exported table lists both requested and actual withdrawals.
Does compounding guarantee account growth?
No. Compounding applies to losses as well as gains. A constant positive rate is a mathematical assumption, not evidence that a trading strategy can earn it. This tool does not estimate the chance of achieving a result.
Can I use it for something other than forex?
Yes, when the same period-by-period percentage model fits your scenario. It does not calculate interest schedules, asset prices, leverage, margin calls or liquidation.
About the author
Demetris Makrides
Chief Commercial Officer at Quadcode, with over 8 years of experience in dealing and market making.