Forex Compound Calculator
Built for forex traders. Models the 5-day trading week (~260 days/year), weekend gaps, and realistic monthly compounding. Set your starting balance and target return — see where consistency takes you.
How compounding works
The formula
Each period, profit is calculated on your current full balance — including all prior gains. With a starting balance P, periodic return r, and n periods:
balance = P × (1 + r)nWith a profit split s (your share %) and withdrawal w:
balance = (balance + balance×r×s/100 + C − w) per periodWhy it matters
Compounding turns consistency into outsized results. A trader making 5% monthly doesn't grow 60% a year — they grow roughly 79%, because each month's gains compound on a larger base.
The flip side: losses compound too. A 50% drawdown requires a 100% gain just to break even. This is why risk management — not raw return — is the real edge.
Common questions
Why does this forex calculator use 260 days per year?
Forex markets trade 24/5 — Monday through Friday, closing for weekends. That's approximately 260 trading days per year, not 365. Using 260 for daily compounding gives you an accurate CAGR and realistic projections that account for the weekend gap.
What is the weekend gap and why does it matter for compounding?
When forex closes Friday and reopens Sunday/Monday, no compounding occurs over the weekend. This 'weekend flaw' means daily compounding over 260 days produces different results than 365-day compounding. Our calculator skips weekends in daily mode to model this accurately.
What is a realistic monthly return in forex?
Consistent forex traders target 3–8% per month with disciplined risk management. Returns above 10% monthly are achievable in good conditions but signal elevated risk. Always pair compounding projections with a lot size calculator and risk-of-ruin analysis.
Should I compound daily or monthly as a forex trader?
Monthly compounding is the standard for forex because most traders evaluate performance monthly. Daily compounding over 260 days can show dramatic curves but assumes you profit every single trading day — use it to model best-case scenarios, not realistic ones.
How do I share my forex compounding projection?
Click 'Share My Vision' — it copies a URL with all your inputs saved as query parameters. Paste it in Discord, X, or your trading journal. Anyone who opens the link sees your exact projection with the same chart and numbers.
Can I model withdrawals from my forex account?
Yes. Set a regular withdrawal (fixed dollar amount or percentage of balance) and the calculator deducts it each period before the next compounding cycle. This models taking living expenses or profit harvesting while letting the remainder compound.
Ready to put compounding to work?
Pair this projection with disciplined position sizing. Explore our other free trading tools.