Forex Compounding Calculator
A forex compounding calculator applies a percentage change to the balance period after period, so each change is taken on the new balance. Balance after n periods = start × (1 + % ÷ 100)^n, so 1,000 changing by 2% a period for 12 periods ends at 1,268.24.
How do you calculate compounding in forex?
Compounding means each period's percentage change is taken on the balance at the start of that period, not on the original deposit. The balance after n periods is start × (1 + % ÷ 100) to the power of n. A deposit added each period is included before the next period's change is applied.
Without compounding, the same percentage is taken on the starting balance every time, so the change is the same amount in every period. The calculator shows both results side by side.
What does 2% a month compound to over a year?
A balance of 1,000 that changes by +2% in each of 12 months ends at 1,000 × 1.02^12 = 1,268.24, a total change of 26.82%. Without compounding, 2% of 1,000 is 20 a month and 12 months make 1,240, so compounding adds 28.24 on top of that in the first year.
| Period | Compounded balance | Without compounding |
|---|---|---|
| Month 1 | 1,020.00 | 1,020.00 |
| Month 3 | 1,061.21 | 1,060.00 |
| Month 6 | 1,126.16 | 1,120.00 |
| Month 12 | 1,268.24 | 1,240.00 |
The gap between the two columns grows with every period, which is why compounding matters more over long runs.
How do losses compound?
Losses compound in the same way: each loss is taken on a smaller balance, and a bigger gain is needed to get back to the start. A balance of 5,000 that falls 5% ten times in a row ends at 5,000 × 0.95^10 = 2,993.68, a fall of 40.13%, and then needs a 67.02% gain to return to 5,000.
Enter a negative percentage in the calculator to see this. Why the size of each loss decides how deep a losing run can go is covered in trading capital management, and how to come back from one in surviving drawdowns.
How do regular deposits change the result?
A deposit added at the end of each period is compounded from the next period on, so the earlier it goes in, the more periods it is compounded for. Starting at 1,000 with +2% a month and 100 added each month, the balance after 12 months is 2,609.45, of which 1,200 is deposits.
The same 12 months without any percentage change would end at 2,200, the starting balance plus the deposits. The calculator reports the deposits separately, so the total change it shows excludes them.
Where does the percentage per period come from?
Use your own record: the average percentage your account changed by per week or per month over a long run of trades, from your trading history. MetaTrader 5's trading report has a Growth view that shows the change in your account as a percentage, excluding deposits and withdrawals.
A result built on a few good weeks says little about the next ones. The trading performance metrics lesson explains how many trades a record needs before its averages mean much, and the expectancy calculator works out the average result per trade of a record you enter.
What does each input mean?
Enter a starting balance, a percentage change per period, the number of periods and an optional deposit per period. The period can be anything you choose, such as a day, a week or a month, as long as the percentage is for that same period.
- Starting balance: the balance at the start, in any currency. The results are in the same currency.
- Change per period (%): the percentage the balance changes by in each period. Enter a negative number for a fall.
- Number of periods: how many times the change is applied, from 1 to 600.
- Deposit added each period: an amount added at the end of every period. Leave it at 0 for none.
The table lists every period with its change and the balance after it. Nothing you enter is stored.
Frequently asked questions
What is the compounding formula?
Balance after n periods = starting balance × (1 + r)^n, where r is the change per period as a decimal (2% = 0.02). With a deposit d at the end of each period, add d × ((1 + r)^n − 1) ÷ r.
What is the rule of 72?
A shortcut for how many periods a balance takes to double: 72 divided by the percentage per period. At 2% a period it gives 36 periods; the exact answer from the formula is 35.0 periods.
Is compounding the same as reinvesting profits?
Yes, in trading the two mean the same thing. If position sizes are set as a percentage of the current balance, as the position size calculator does, gains and losses feed into the next trade's size, and the account compounds.
Should I compound daily, weekly or monthly?
The arithmetic is the same at any period length. What changes is the percentage you enter: it must be the change for that period, so a weekly figure goes with weeks and a monthly figure with months.
Sources
- U.S. Securities and Exchange Commission, Investor.gov Compound Interest Calculator (accessed 27 October 2026): works out growth from an initial amount, regular contributions, an interest rate and a compounding frequency. https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator
- MetaQuotes, MetaTrader 5 Help: Trading Report (accessed 27 October 2026): the Growth mode of the balance graph shows deposit growth as a percentage, calculated from the trading result and excluding withdrawals and deposits. https://www.metatrader5.com/en/terminal/help/trading/report
Practise what you learned
Open an account to use MetaTrader 5. Start on a demo account before risking real money.
Open Account