Trading Compound Calculator — Monthly Returns Projection
See how a consistent monthly trading return compounds. Includes optional monthly withdrawals for full-time trader projections.
Consistent traders aim for 2–5%/mo. 10%+ is exceptional or a lie.
3.23× your starting capital · gained $22,251
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The dream and the math
“Just make 10% a month” sounds modest. Compounded for two years it's 9.85× your capital. Three years it's 30.9×. That's why traders chase consistency — small consistent edges compound into life-changing money.
The reality
Real traders aim for 2–5% per month sustained. 10%+ for an extended period is the realm of survivorship bias. Hedge funds celebrate 15–20% annual returns. If a course is promising 10% monthly without showing audited statements, walk away.
Withdrawals matter
The calculator lets you simulate monthly withdrawals — what most aspiring full-time traders actually plan around. Withdrawals slow compounding sharply; running the numbers shows just how much capital you really need before going full-time.
Compounding is asymmetric: a drawdown needs a larger percentage gain to undo it than the percentage that caused it. The drawdown recovery calculator shows how much larger.
How to use the Trading Compound Calculator
Takes about a minute. No signup, no download, your data stays in your browser.
- 1Open the tool. Scroll up to the Trading Compound Calculator above — it loads instantly in your browser, no install needed.
- 2Enter your values. The fields come pre-filled with realistic defaults so you can see how it works — replace them with your own numbers.
- 3Read the result. The output updates instantly. Copy or share it — nothing is uploaded to a server, everything stays on your device.
Frequently asked questions
Common questions about the Trading Compound Calculator.
Why does the calculation assume a constant return?
Because it is arithmetic rather than a forecast, and holding the rate constant is what makes two scenarios comparable. Real returns vary and can be negative, so read the output as what a fixed rate would produce rather than as a projection of what will happen.
Why do losses hurt more than equivalent gains help?
Because compounding is multiplicative. A fall and a rise of the same percentage do not cancel — the rise applies to a smaller base, so you finish below where you started. That asymmetry is the single most important property of compounded returns and the reason drawdowns matter more than they appear to.
Does it account for costs?
Check what the inputs ask for. Commissions, spreads, financing and tax all reduce the compounded figure, and because they recur they compound against you in exactly the way returns compound for you. A gross figure and a net figure diverge substantially over many periods.
Is this a projection of my account?
No. It shows what a fixed rate applied repeatedly produces, which no real account delivers. Trading carries substantial risk including total loss, and a compounding table is arithmetic about a hypothetical sequence rather than an expectation.
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