How compounding works
Compounding means each month’s return is earned on a larger balance than the month before.
Ending balance = Starting balance × (1 + monthly return)months, plus the growth on any deposits.
Use realistic numbers
Small differences in monthly return produce huge differences over years, which is why projections built on 10% a month look extraordinary on paper. Real trading returns are uneven and include losing months. Treat this as a planning tool for consistency, not a forecast.
Frequently asked questions
Is a 10% monthly return realistic?
Sustained returns at that level are extremely rare. Use conservative assumptions and stress-test them with losing months.
Projections are hypothetical and not a forecast of results. Risk warning: Trading leveraged products involves a high risk of loss. Nothing on this site is investment advice.