Compounding calculator.
Project how an account grows when each period's return is reinvested. Set a starting balance, a return per period and a number of periods, and see compound versus simple growth.
ZENKEI
ZENKEI
Project how an account grows when each period's return is reinvested. Set a starting balance, a return per period and a number of periods, and see compound versus simple growth.
A projection at a constant return, not a forecast. Real returns vary, and compounding compounds losses too.
Compounding is what happens when each period's gain is added back to the balance and then earns a return of its own. Instead of growing in a straight line, the balance curves upward, because gains start earning gains. The longer you compound, the wider the gap over simple growth.
Here r is the return per period as a decimal and n is the number of periods. The exponent is where the power comes from: a small edge, repeated, becomes a large number.
Start with 1,000, make 5% per period, and run it for 24 periods. Compounding gives 1,000 × 1.0524 = 3,225, a 222% gain. Simple interest, applying 5% of the original each time, would give only 1,000 + (1,000 × 0.05 × 24) = 2,200. Same return, over 1,000 more, purely from reinvesting.
A constant return every period is a projection, not a promise. Real trading returns are uneven and include losing periods, and the same maths that compounds gains also compounds losses and drawdowns. Use this to understand the mechanism, then protect it with sound position sizing.
An Expert Advisor can size every trade from the current balance, so profits reinvest automatically. We build custom EAs with position sizing and risk control built in. Turn your rules into one with strategy to Expert Advisor conversion.
This calculator is provided for educational purposes only and is not financial or investment advice. Projected returns are illustrative and not a forecast of results.
A compounding calculator projects how a balance grows when each period's return is added to the balance and earns a return in turn. You enter a starting balance, a return per period and a number of periods, and it shows the final balance and total growth.
The final balance equals the starting balance times one plus the return per period, raised to the number of periods: final = start times (1 + r) to the power n, where r is the return per period as a decimal and n is the number of periods.
Simple growth applies the same return to the original balance each period, so it grows in a straight line. Compound growth applies the return to the running balance, so gains earn gains and the curve steepens over time. The gap widens the longer you compound.
No. A fixed return every period is a projection, not a forecast. Real trading returns vary and include losing periods, and compounding also compounds drawdowns. Use the calculator to understand the maths, not to expect a guaranteed outcome.
Yes. An Expert Advisor can size each trade from the current balance, so profits are reinvested automatically and the account compounds. ZenkeiX builds custom Expert Advisors with position sizing and risk management built in.
We turn strategies into Expert Advisors that reinvest and manage risk, source code included.