Starting Balance ($)
Monthly Return (%)
Months
Monthly Withdrawal ($)
Growth Projection (click to copy)
Frequently Asked Questions
What is compounding in trading?
Compounding means reinvesting profits back into your trading account instead of withdrawing them. This causes exponential growth — your profits generate more profits. A $10,000 account growing at 5%/month compounds to $34,000 in 24 months without withdrawals.
What is a realistic monthly return for traders?
Professional traders typically target 3–8% per month consistently. 10%+ monthly is possible but unsustainable over years. Most retail traders who survive long-term aim for 2–5% per month. Never use unrealistic projections like 50%/month.
Should I compound or withdraw profits?
Early in your trading journey: compound everything to grow the account faster. Once you reach your target balance: withdraw a portion monthly for income while still compounding the rest. The optimal split depends on your income needs and growth goals.
How does compounding affect prop firm trading?
Prop firms provide capital and pay you a profit split (typically 70–90%). If you're keeping 80% of profits and compounding, you effectively grow your trading power without risking personal capital. Some prop firms allow scaling once you hit profit targets.