Project your trading account growth over any period. Set monthly return %, starting balance, and optional monthly withdrawal. See exact balance at every milestone.
enter account details
Starting Balance ($)
Monthly Return (%)
Months
Monthly Withdrawal ($)
Final Balance
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Realism
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Total Profit
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Growth Projection (click to copy)
Trading Decision
Check the Realism card before trusting the projection
A "Realistic" or "Aggressive" rating means the projection is worth planning around. "Very Aggressive" or "Unrealistic" means the number is a mathematical illustration of compounding, not an achievable target — use a lower, sustainable rate instead.
Re-run this with your actual verified track record
Use your real historical average monthly return, not a hoped-for number, for a projection you can actually plan finances around.
Growth without protection is fragile
This projection assumes no losing streaks interrupt the compounding. Pair it with a realistic drawdown expectation before treating the final balance as a plan.
➜ Next step: Stress-test this growth plan against a realistic losing streak with the Drawdown Calculator, or check your strategy's long-term survival odds with the Risk of Ruin Calculator.
How to Use the Compound Trading Calculator
Enter starting balance — your initial trading capital.
Set monthly return % — your realistic average monthly return. Be conservative — use half your best month's return as a sustainable estimate.
Enter number of months — the projection period. Use 12 for annual, 24 for 2-year, 60 for 5-year projections.
Set withdrawal % — if you plan to withdraw profits monthly, enter the percentage you will withdraw. 0% for full compounding.
Read the projection table — see month-by-month balance growth including the powerful acceleration effect of compounding in later months.
📊 Realistic returns: Consistently profitable retail traders average 3–8% per month. Prop traders with scaling plans can target 5–10%. Avoid planning around your best months — plan around your average months. Compounding works powerfully even at conservative 3–5% monthly returns.
Understanding Compound Growth in Trading
🔄 What Is Compounding?
Earning returns on previous returns. At 5% monthly: $10,000 → $10,500 month 1 → $11,025 month 2 → $11,576 month 3. The growth accelerates because each month's 5% is applied to a larger base.
📈 The Power of Time
12 months at 5%/month: $10,000 → $17,959 (79.6% gain). 24 months: $32,251 (222% gain). 36 months: $57,964 (480% gain). The acceleration in years 2–3 is dramatic — patience is the key ingredient.
💸 Withdrawal Impact
Withdrawing 50% of profits each month still grows the account but at a slower rate. This provides income while maintaining account growth. The trade-off between income withdrawal and compounding growth is the central planning decision for funded traders.
⚡ Prop Firm Compounding
Scaling plans at prop firms multiply the compounding effect. Starting with $100K account, hitting 8% target every 3 months, getting 25% scale-up every 4 months: within 2 years, the funded account size can reach $400K+.
⚠️ Risk of Ruin
Compounding losses are equally powerful in reverse. At -5% monthly: $10,000 → $5,987 after 10 months. This is why consistent small gains compound dramatically better than volatile large gains — consistency prevents the devastating reverse compounding of losses.
🎯 Realistic Planning
Most traders overestimate monthly returns in projections. The conservative approach: project at 50% of your average monthly return. If your average is 6%, project at 3%. If you outperform, it is a bonus. If you underperform, you are still on track.
Building a Compound Trading Plan
The funded trader compounding strategy
Phase 1 (months 1–6): Pass challenge, get funded, focus entirely on consistency at 0.5–1% risk. Target 4–6% monthly. Do not withdraw — reinvest all profits into scaling. Phase 2 (months 7–12): Begin scaling, add a second funded account. Total capital under management doubles. Phase 3 (year 2+): Multiple funded accounts across 2–3 firms, withdraw 50% of profits monthly while compounding the rest.
The compounding mindset
The biggest obstacle to compounding is impatience. A trader making 5% monthly feels behind when they see others claiming 50% monthly returns. But the 5% trader compounds to 179% annual returns — far exceeding what most aggressive traders achieve consistently. Focus on monthly consistency, not monthly maximums.
Reinvesting challenge fees
A common mistake: withdrawing all profits and using personal funds for next challenge fees. Instead, keep one payout specifically for funding the next challenge level. This creates a self-funding progression: $100K account → first payout funds $200K challenge → second payout funds $400K challenge. Zero additional personal capital required after the first challenge.
🔄 The compound formula: Balance × (1 + monthly return%)^months. At just 4%/month for 24 months: starting $10,000 becomes $25,633. At 6%/month: $40,489. Consistency at moderate returns beats sporadic high returns every time.
Compound Growth Formula
Final Balance = Starting Balance × (1 + Monthly Return)^Months, applied month by month with any withdrawals subtracted before the next month compounds.
Worked example
$10,000 starting balance, 3% monthly return, 12 months, no withdrawals: Final Balance = 10,000 × (1.03)^12 = $14,258. Total profit = $4,258, a 42.6% return on capital over the year.
Assumption: this projection assumes the monthly return is achieved consistently every single month, with no losing months — real trading returns vary month to month even for a profitable long-term strategy.
Avoid These Mistakes
Treating the projection as a guarantee
This is a mathematical illustration of compounding, not a forecast — real returns vary month to month, and a string of losing months can derail even a realistic long-term average.
Chasing an "Unrealistic" monthly return
If the Realism card flags your input, don't treat the resulting balance as a target — a sustainably lower monthly return compounds to strong results without requiring an unachievable win rate.
Ignoring drawdowns in the plan
A single bad month can erase several good ones. Pair this projection with a realistic drawdown expectation rather than assuming smooth, uninterrupted growth.
Withdrawing more than the strategy generates
Setting a monthly withdrawal higher than your typical monthly profit slowly drains the account instead of growing it — check the projection reflects your real, sustainable withdrawal rate.
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.