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February Promotion

Get 30% off your prop evaluation

February Promotion:Get 30% off your prop evaluation

*T&Cs apply.
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Forex Compounding
Calculator

Foreign exchange trading can be a lucrative business. By compounding gains over time, small amounts of risk capital can grow exponentially. Do you want to know your trading account's potential? Then check out our Forex Compounding Calculator.

Please enter the starting balance
Please enter the amount of years
Please enter the amount of months
Please enter a return percentage
Please enter the compounding period
Please enter the account currency

*

Risk Warning: ***Past performance is not indicative of future results. Forex trading involves substantial risks and is not suitable for all investors. The information provided here is for educational purposes and is not intended to be initial investment advice.

Forex Compounding Projection

What Is A Forex Compounding Calculator?

Compounding is the act of reinvesting returns to generate additional earnings over a period of time. It is a powerful tool for forex traders that desire to realize extraordinary returns throughout their careers.

Our Forex Compounding Calculator takes the guesswork of figuring out your profit potential in the marketplace. Simply enter your initial investment value, set the gain percentage, local currency, and time in the market. The Forex Compound Calculator does the rest!

what is a forex compounding calculator illustration
market analyst

Using The Forex Compound Calculator

The Forex Compound Calculator is a quick and easy way to project how your trading account will perform over time. Follow the steps below, and you can get up-to-speed on the power of compounding returns.

Once your inputs have been entered, a comprehensive report is automatically generated. Complete with monthly projections, a balance total gain, and an annual growth rate, the Forex Compound Calculator gives you a detailed view of your future.

  1. Enter a starting balance
  2. Enter a period of time denominated in years and months
  3. Enter a percentage return
  4. Choose a compounding frequency, monthly or yearly
  5. Select an account base currency

The Compounding Interest Formula

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

The compounding interest formula is used to accurately calculate an investment's future value concerning the following variables:

  1. FV = Future Value
  2. P = Principal Investment
  3. r = Percentage Return Per Period
  4. n = Number Of Compounding Instances Per Period
  5. t = Number Of Periods
compounding interest formula
power of compounding

Using The Forex Compound Calculator

The Forex Compound Calculator is a quick and easy way to project how your trading account will perform over time. Follow the steps below, and you can get up-to-speed on the power of compounding returns.

Once your inputs have been entered, a comprehensive report is automatically generated. Complete with monthly projections, a balance total gain, and an annual growth rate, the Forex Compound Calculator gives you a detailed view of your future.

FAQs

Here are a few of the most frequently asked questions on the Forex Compounding Calculator.

How Do I Estimate Gain Percentage?

In practice, there are many ways to determine a set gain percentage. A few of the most common are backtesting, adopting industry standards or desirable targets. The process can be nuanced, so conservative estimates are recommended.

Can I Use The Forex Compounding Calculator To Project Any Strategy's Performance?

Yes. Whether you are a scalper, day trader, or swing trader, the Forex Compounding Calculator can project your profit potential.

Is The Forex Compounding Calculator Only For Forex?

No. It may be used to evaluate trades in any market for any period of time. In this way, it is an invaluable financial planning tool.

My Strategy Calls For More Losing Trades The Profitable Trades. Will This Negatively Impact My Long-Term Profitability?

Not necessarily. Your financial performance will depend on how much money you make on winning trades compared to losing trades. In this way, a string of consecutive winning trades can make up for an extended period of losers.

Use HowToTrade tools for more in-depth analysis

Harness our tools and analysis to make informed trading decisions.

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Our economic calendar showcases relevant events to help you trade these markets too.

View calendar
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Our Forex heat map includes real-time data and can help you determine the strongest and the weakest currencies on the Forex market right at this moment.

Use it now
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Use our Value at Risk Calculator to estimate potential losses. This tool can help you make more informed investment decisions and ultimately help protect your hard-earned money.

Use calculator
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Use our simple yet powerful Forex Lot Size Calculator to calculate the exact position size for each trade and manage your risk per trade like a pro.

Use calculator
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With our free Forex Profit Calculator, you can calculate your profits and losses before or after executing a trade so you'll know exactly how much profit or loss you can expect.

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This free interactive currency strength meter is going to show you which currency pairs are strong and weak, in real-time.

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