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Compound Growth Calculator

Project how consistent returns compound over time.

Starting balance ($)

Return per period (%)

Number of periods

Projected ending balance$16,084Total growth of $6,084 (61%) over 24 periods. This is a hypothetical projection assuming a constant return every period, which real markets never provide.

The mathematics of compounding

Compounding is the process of earning returns on your previous returns. Applied to a trading account, it means each period's gains increase the base the next period's return is calculated from. Over enough periods, this produces exponential rather than linear growth.

The formula is ending balance = starting balance × (1 + rate)^periods. The catch is the assumption of a constant return every period. Real markets deliver uneven, often negative periods, and drawdowns interrupt compounding severely. Treat this projection as an illustration of the math, not an expectation.

Read more on compound growth in trading.