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Forex Compounding Calculator

Model forex account compounding with a fixed return or a sequence of gains and losses. Include contributions, profit withdrawals, and a period-by-period balance schedule.

Maintained by Pruthvirajsinh ZalaEditorial methodology

Changes money labels only. Amounts are not converted and local tax or lending rules are not applied. Article examples keep their stated currency.

ExampleSample values — edit any field to see your result.

$
$

Added after the return and any profit withdrawal, including after the final period.

%

The rest is withdrawn as cash. Losses always reduce the account balance in full.

%

A hypothetical return on account equity after trading costs, not an annual bank interest rate.

Results update as you type.

Ending account balance

$2,536.48

Estimated result

A hypothetical scenario over 12 months. Contributions are not trading profits. No exchange-rate forecast, leverage, margin calls, or taxes are modeled; enter returns after trading costs.

Total trading gain / loss
$536.48
Additional contributions
$0.00
Profit withdrawn
$0.00
Balance plus withdrawn profit
$2,536.48

Saved calculations stay only in this browser. Share copies a link containing your entered values.

Account balance by period

2468101205001K1.5K2K2.5KPeriodClosing balance (USD)
  • Closing balance

Closing balances from the detailed schedule below. The first point is after the first payment or contribution period.

Compare scenarios

Keep a baseline, then change an assumption to see its effect side by side.

Compounding schedule

PeriodOpening balanceReturnGain / lossProfit withdrawnContributionClosing balance
1$2,000.002.00%$40.00$0.00$0.00$2,040.00
2$2,040.002.00%$40.80$0.00$0.00$2,080.80
3$2,080.802.00%$41.62$0.00$0.00$2,122.42
4$2,122.422.00%$42.45$0.00$0.00$2,164.86
5$2,164.862.00%$43.30$0.00$0.00$2,208.16
6$2,208.162.00%$44.16$0.00$0.00$2,252.32
7$2,252.322.00%$45.05$0.00$0.00$2,297.37
8$2,297.372.00%$45.95$0.00$0.00$2,343.32
9$2,343.322.00%$46.87$0.00$0.00$2,390.19
10$2,390.192.00%$47.80$0.00$0.00$2,437.99
11$2,437.992.00%$48.76$0.00$0.00$2,486.75
12$2,486.752.00%$49.73$0.00$0.00$2,536.48

Explore how an account balance changes when gains are reinvested, profits are withdrawn, or losing periods occur. This tool models the returns you enter; it does not predict exchange rates or a trading strategy’s performance.

Choose fixed or varying returns

Use Fixed return for a constant hypothetical percentage over a chosen number of periods. Use Varying returns to enter gains and losses in order, such as 5, -3, 2. Select the period label to make the scenario clear. The label does not convert the rate or infer a trading calendar; twelve trading days means twelve returns, regardless of weekends and holidays.

Set the starting balance, any contribution made after every period, and the percentage of positive profits to reinvest. At 100% reinvestment, all gains stay in the account. At 0%, positive gains are withdrawn, but losses still reduce the balance. Contributions occur after both the return and the withdrawal, including the last period.

Formula

period gain or loss = opening balance × return / 100
profit withdrawn = max(gain, 0) × (1 − reinvestment / 100)
closing balance = opening balance + gain − withdrawal + contribution
no cash flows, fixed return: final balance = initial balance × (1 + r)^n

The schedule uses unrounded balances between periods. Currency results are rounded for display. A negative total trading gain indicates a loss even when contributions make the ending account larger than its starting balance.

Examples

Full reinvestment

A hypothetical 1,000 starting balance gaining 2% per month for 3 months becomes 1,061.21 with no contributions. The gain is 61.21. The assumed 2% is a scenario input, not a suggested or expected return.

A gain followed by a loss

Starting at 1,000, a 10% gain produces 1,100. A subsequent 10% loss leaves 990, a net loss of 10. Equal positive and negative percentages do not cancel because they apply to different balances.

Taking some profit out

Starting at 1,000 with a 10% gain and 50% reinvestment, 50 remains in the account and 50 is withdrawn. The closing balance is 1,050 and the balance plus withdrawn profit is 1,100, before any contribution.

Compare the right results

The ending account balance shows capital still in the account. Balance plus withdrawn profit also includes the cash removed during profitable periods. Neither should be treated as profit without subtracting all money contributed. The chart follows the account balance only; the schedule separates contributions and payouts.

When contributions or partial profit withdrawals occur, the order of returns can change the result. A flat average percentage can hide this effect. Use varying returns to compare sequences while keeping contributions and reinvestment settings the same.

Limits of a trading projection

Constant gains are not guaranteed. Real trading returns vary, and leverage can amplify losses beyond deposited capital. A −100% period reduces the existing account to zero; only a new contribution can restore a positive balance in this model. Returns below −100% are rejected because borrowing and negative equity require a different model.

The CFTC's forex advisory explains leverage, dealer, and withdrawal risks. Use the margin calculator for margin arithmetic and the currency converter for exchange-rate conversion. Changing this calculator's display currency changes the symbol only.

Frequently asked questions

Is the return an annual interest rate?
No. Enter the return for each selected month, week, trading day, or trade. A 2% monthly return is applied every month, not divided by twelve.
What happens to losses when I reinvest only some profits?
The reinvestment percentage applies only to positive gains. A losing period reduces the account balance by the full entered percentage.
Are additional deposits counted as profit?
No. Contributions are reported separately. Total trading gain or loss equals ending balance plus withdrawn profit minus the starting balance and additional contributions.
Does the calculator include leverage or trading costs?
It does not simulate leverage, margin calls, spreads, commissions, financing charges, or taxes. Enter account-equity returns after trading costs. Actual leveraged losses may exceed the balance, which this nonnegative-balance model does not support.

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