Forex Compound Calculator

01 What is a Forex compounding calculator?

A Forex Compounding Calculator is one of the most popular tools used by Forex traders to simulate the growth of one's trading account, by compounding the gains with a set gain percentage per trade, over a specified period of time.

Using this tool can help traders see how powerful compounding the gains can be, even with a low-profit percentage or moderate gain percentage of e.g. 1% per trade where after just 70 successful trades the initial investment value would double!

02 How does Forex compound calculator work?

To calculate the profits from your foreign exchange trading, over a number of periods with a set gain percentage please follow the steps below.

• Enter your trading account starting balance
• Enter the no. of periods you're compounding the starting balance
• Enter the percentage of gain you'll aim for per trade
• Click the 'Calculate' button and watch the magic happen

03 What is the compounding interest formula?

Formula: FV = P (1 + r/n) ^(nt)

• FV = Future Value of your investment
• P = Principal or Initial deposit
• R = Gain % per period
• N = The number of times the investment is compounded in a period
• T = Number of periods

04 Compounding interest example

For instance, an annual interest rate of 10% compounded for 2 years with an initial account balance of $100 would make you a $10 profit for the first year (out of $100) and $11 profit for the second year (out of $110) for a total profit of $121.

If you compare this with a non-compounding investment, it would result in a balance total gain of only $120 (ending account balance) since you would get a fixed $10 profit each year.