Forex Compounding Calculator
Calculate how a trading balance changes when the same return is applied to each new period balance. Add an optional recurring deposit or withdrawal, then inspect the compound-growth path, contribution baseline and full arithmetic schedule.
What does this forex compounding calculator show?
It applies the return you enter to the current balance once per selected period, then applies the recurring cash flow. Because each closing balance becomes the next opening balance, gains and losses compound. The result is a deterministic illustration of your inputs, not an expected-return forecast.
- The entered percentage is a return per selected period; the calculator does not convert a monthly rate into a weekly or yearly rate.
- A positive recurring cash flow is a deposit and a negative value is a withdrawal. It is applied after each period return.
- The chart separates the modeled balance from net contributed capital so deposits are not mistaken for trading growth.
Enter a compounding scenario
Use one consistent period basis. Enter 0 when there is no recurring deposit or withdrawal.
A display label only; no currency conversion occurs.
The balance before period 1.
The exact entered percentage is repeated once per selected period.
Enter 0 for none, a positive deposit, or a negative withdrawal. Applied after the return.
A whole-number horizon from 1 to 1,200.
Defines what one entered period means; it does not convert the return.
Compound growth breakdown
Deterministic Periodic Growth model 1.0.0.
Modeled balance path
Derived only from the entered constant scenario.
The comparison line adds only the starting balance and applied cash flows; it does not represent a second return scenario.
| Period | Opening balance | Entered-rate change | Applied cash flow | Closing balance |
|---|
How to use the calculator
- Enter the balance at the start of the first compounding period.
- Choose the period label and enter the return that applies once per that exact period.
- Enter a recurring deposit, a negative withdrawal, or zero for no cash flow.
- Set the number of periods, calculate, then compare the balance line with the net-capital baseline and schedule.
How does forex compounding work?
Compounding means each period return is calculated from the current opening balance, not repeatedly from the original balance. A positive return increases the base used next period; a negative return reduces it.
This model applies the entered return first and the signed recurring cash flow second. The closing balance then becomes the next opening balance. A requested withdrawal is limited when necessary so the modeled balance cannot fall below zero.
Worked examples
| Entered scenario | Derived output | Meaning |
|---|---|---|
| 1,000; 5% per month; no cash flow; 12 months | 1,795.86 | The 795.86 change comes entirely from the repeated entered return. |
| 1,000; 0% per month; +100; 12 months | 2,200.00 | With a zero return, the 1,200 increase comes entirely from deposits. |
| 1,000; −10% per period; 0; 2 periods | 810.00 | The second 10% loss is applied to 900, not to the original 1,000. |
Model and execution limitations
- The same return is repeated every period; real returns do not occur smoothly or predictably.
- Volatility, drawdown, order execution, fees, spread, financing, taxes and changing market conditions are not modeled.
- Every recurring cash flow is assumed to occur after the return at the end of the selected period.
- Changing the period label does not mathematically convert the entered rate. A 1% monthly scenario and a 1% weekly scenario are different assumptions.
- The schedule is an entered-assumption scenario and must not be interpreted as expected performance.
The CFTC cautions that hypothetical results have inherent limitations and that actual results can differ because of factors including spreads, commissions, liquidity and execution. The result on this page should be read within the narrower boundaries stated above.
Frequently asked questions
- The calculator multiplies each opening balance by one plus the entered period return, applies the recurring end-of-period cash flow, and carries that closing balance into the next period.
- After the entered return at the end of every period. A deposit therefore starts earning the entered return in the following period.
- Yes. Enter a negative recurring cash flow. If a requested withdrawal exceeds the after-return balance, the applied amount is limited so the balance does not become negative.
- No. The percentage is applied once per selected period exactly as entered. Convert or estimate a comparable rate separately before entering it.
- It starts with the opening balance and adds the applied deposits or withdrawals without adding trading returns. The gap from the modeled balance is the cumulative return effect under the entered scenario.
- No. It repeats one constant return and cash flow and does not estimate variable market outcomes, costs, drawdowns or execution.
Method sources and provenance
- Investor.gov compound-interest calculator — Official example of initial amount, recurring cash flow, time and entered rate as scenario inputs.
- CFTC trading-system advisory — Official limitations for hypothetical performance.
Local calculation: Inputs are processed in the browser by the named versioned model. The page does not send entered balances, rates, probabilities or notes to a calculation API.
Continue the performance workflow
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