See how your trading account can grow with compound interest. Calculate the power of reinvesting profits and project your long-term wealth building potential. Perfect complement to our position sizing and profit/loss calculators.
Project how compound interest can grow your trading account over time
See how different return rates and time periods affect your wealth building potential. Click any example to load it into the calculator above.
Steady, sustainable growth with lower risk. Perfect for conservative traders focusing on capital preservation while building wealth.
Balanced approach with solid returns. Good for intermediate traders with proven strategies and risk management skills.
High-growth potential but requires exceptional skill and risk management. Only for experienced traders with proven track records.
The true power of compound interest over time. Shows how consistent returns can build substantial wealth through patience and discipline.
Input your starting account balance. This is the principal amount that will grow through compound interest over time.
Enter your expected monthly return percentage. Be realistic based on your trading strategy and historical performance.
Select how many months you want to project. Longer periods show the exponential power of compounding more clearly.
Analyze your projected final amount, total gains, and effective annual percentage rate to understand growth potential.
Compound interest is "interest on interest" - your returns generate their own returns. In trading, this means reinvesting profits to trade larger positions, accelerating account growth exponentially over time.
While compounding is powerful, be realistic about returns. Professional traders often target 10-30% annually. Monthly returns of 2-5% are more sustainable than aggressive 20%+ targets that increase risk significantly.
Compounding amplifies both gains and losses. Protect your capital with proper risk management, position sizing, and stop losses. A few large losses can devastate years of compound growth.
Consider taking some profits along the way. Many successful traders compound 70-80% of profits while withdrawing 20-30% for diversification and lifestyle goals.
Compound interest in trading means reinvesting your profits to generate returns on both your original capital and previous gains. This creates exponential growth over time as each period's returns become part of the principal for the next period.
Compound interest is calculated using the formula: A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times interest compounds per year, and t is time in years.
Realistic monthly returns vary widely based on strategy and risk tolerance. Conservative traders might target 2-5% monthly, while more aggressive strategies might aim for 10-20%. Remember that higher returns typically come with higher risk.
While compounding maximizes growth, many traders withdraw some profits for diversification and risk management. A common approach is to compound 70-80% of profits while taking 20-30% as withdrawals.
Our compound interest calculator shows the potential, but combine it with our position sizing and risk management calculators - then get the signals to make it reality with our AI-powered Infinity Algo indicator for TradingView. Perfect for building wealth through consistent trading.