Compounded Profits Calculator | Forex, Stocks, Crypto
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Use our precise compound profit calculator to help you calculate your trading account growth rate by compounding gains with a chosen win percentage per trade.
What is Compounding
Compounding is a money management technique in which profits from successful trading are reinvested to allow bigger trade sizes, and ultimately, higher earnings over time.
Traders mastering this technique will, over a set period of time, build up the trading account’s capital in an exponential and highly profitable way.
A forex compounding calculator is the perfect toll to simulate the growth of a trading account, by compounding the gains with a set win percentage per trade. The compound growth calculator works by adding the profit obtained with a trade, and with a set gain percentage, to the original investment value.
Then, it simulates the reinvesting of the new balance (previous investment value + profit) for a set of periods (5 trades per day, 10 trades per week, 20 trades per month, etc.), always compounding the gains into the previous investment value, allowing for bigger investment values and higher profits.
Using this tool can illustrate to traders how powerful compounding the gains can be, and, that even with a moderate gain percentage of 1% (for example) per trade, after just 70 successful trades the initial investment value will be doubled!
With this compounding calculator traders can simulate and choose their preferred settings in order to accurately calculate the account growth percentage with a chosen set of profitable trades, over a certain period of time.
How to Use the Compound Gains Calculator
This compound gains calculator is useful to accurately find out how much money can be added to the initial starting balance, over a number of periods with a set gain percentage. Let's see how to use our calculator, field by field.
Starting balance: This field represents the initial investment value, or initial account equity. For our example we will use a starting balance of 1,000 units of any account base currency.
Number of periods: This field is the number of periods where traders can simulate a winning strike of any consecutive winning trades. For our example, we will assume that over a period of a year we will have 30 consecutive winning trades.
Gain % per period: The most relevant variable of this compounding gains calculator! The data used in this field can be used to simulate the gain percentage per any period, to suit your trading style. Maybe you are a scalper doing 5 trades a day, with a 0.005% return per trade, for example, or a day trader taking 5 weekly trades with a target of 0.01%, or a long-term trader, taking 5 trades per year with a 1% return per trade. For our example we will use a set gain percentage per period of 2%.
And now, to find out how much our account balance will grow, we hit the red "Calculate" button.
The results: The calculator will display "The Ending Balance" value after compounding the gains of 30 consecutive winnings and the "Total Gain" percentage.
With our example, an initial account equity of 1,000 currency units, and after compounding the profits of 30 consecutive winnings (over a period of 1 year), is now 1,811.36 currency units.
This means that by compounding the gains of 30 winning trades, and even with a low profit percentage of only 2% per trade, the account balance has grown by 81.1% in one year.
The results above will also show a detailed breakdown of how much each compounded trade contributed to increase the account balance in terms of total gain percentage and the ending account balance.
Add this Compound Calculator to Your Website
Our set of calculators use live market rates, allowing traders to get the most accurate calculations possible. These calculators work with most forex pairs (Major and Minor crosses), world indices, metals and with the most popular cryptocurrencies: BTC, DOGE, XRP, LTC, ETH and many more.
Not only it is possible to calculate with precision what would be the growth rate by compounding gains for BTC/USD trades, based on the selected win percentage per trade, or for a 0.20 lot GBP/USD trades, for example, but also, these great calculators are localised in 23 different languages, including Chinese, Russian, Arabic, and Japanese.
With a user-friendly interface and an intuitive design, these tools can be easily customized and embedded with any web page. The great advantage of our tools is that they are completely unbranded, without any 3rd party logos. Plus, these tools can be fully customized to match the colour scheme and the layout of any web page.
If you consider that this complete suite of calculators might create added value for your web pages, or to simply complement a "Tools/Calculators" section of your portal, you are free to embed them on your website.
All the widgets can be used and embedded as they are, or they can be fully customized to suit your website’s colours. After configuring the settings, simply copy/paste the final code to embed the tool/calculator widget on your web page.