Compound Interest Calculator
See how consistent returns compound your trading account over time.
Final Balance
$8,979
Total Gain
+$3,979
Total Return
+80%
Hypothetical returns. Actual trading results vary and losses are possible.
The power of compounding
Compounding means reinvesting your profits so they generate their own returns. A 5% monthly return doesn't give you 60% per year. It gives you 79.6% because each month's gain builds on the previous month's balance.
Example
$5,000 at 5% monthly for 12 months = $8,979. That's $3,979 in profit from a $5,000 starting balance. Without compounding (simple interest), you'd only have $8,000.
The key
Compounding only works with consistency. One large loss can set you back months. That's why risk management and precise entries matter more than any single trade.
Want consistent entries to compound your gains?
See how Axion Algo's buy/sell signals work with proper risk management.