Compound Growth Calculator
See how your account compounds over time based on your trading strategy. Input your risk per trade, win rate, and risk/reward ratio to project long-term growth. Understand the power of compounding and set realistic expectations.
Enter your initial account size, risk per trade, win rate, risk/reward ratio, trades per period, time period, and number of periods. See final account size, total return, compound annual growth rate (CAGR), growth trajectory, and best/worst case scenarios.
Starting account balance
Risk percentage per trade (typically 1-2%)
Your expected win rate percentage
Average win / average loss (e.g., 2 for 2:1 R:R)
Number of trades per time period
Time period for trades per period
Number of time periods to project
Expected Final Account
Projected account after compounding
$21,759.73
Best Case Scenario
If all trades are wins
$107,651.63
Worst Case Scenario
If all trades are losses
$2,993.8
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See Jungle RebounderGrowth Trajectory
Account growth trajectory over trades. Expected case uses your win rate, best case assumes all wins, worst case assumes all losses.
Growth Over Time
Account growth over time periods. Shows how compounding accelerates growth (or losses) over time.
How It Works
Calculation Methodology
This tool calculates compound growth over time based on your trading strategy parameters. It models how your account compounds with each trade, showing expected, best, and worst case scenarios.
Key Insight: Compound growth accelerates over time. Early gains build the base for future gains. A 0.65% return per trade doesn't sound like much, but over 120 trades it compounds to 116% total return. The key is consistency — positive expectancy compounds into significant growth over time. However, negative expectancy compounds into significant losses. Always ensure positive expectancy before trading.
Learn more about compound growth:
Risk management guideExample Scenario
Setup: $10,000 initial, 1% risk, 55% win rate, 2:1 R:R, 10 trades/month, 12 months
What this means: With 1% risk and 55% win rate at 2:1 R:R, you expect 0.65% return per trade. Over 120 trades (12 months), this compounds to 116% total return ($21,600 final). CAGR of 67% is excellent but requires consistent execution. Best case shows maximum potential, worst case shows maximum risk.
Common Mistakes & Warnings
- ⚠Assuming best case is realistic: Best case (all wins) is unrealistic. Actual results will be closer to expected case. Don't plan based on best case — use expected case for realistic projections.
- ⚠Ignoring variance: Actual results will vary significantly from expected, especially with fewer trades. The more trades, the closer actual results will be to expected. Don't expect exact matches.
- ⚠Not accounting for changing performance: Win rate and R:R may change over time as you improve or market conditions change. Recalculate periodically with updated numbers.
- ⚠Trading with negative expectancy: If expected return per trade is negative, you'll lose money over time. Don't trade until you have positive expectancy — improve your strategy first.
Example Scenarios
Try these realistic scenarios to understand compound growth with different strategies.
Scenario 1: Conservative Strategy
Low risk, steady growth. Sustainable long-term approach.
What this means: Conservative 1% risk with 55% win rate and 2:1 R:R gives steady compound growth. Over 12 months (120 trades), expect 116% return. This is sustainable and realistic for most traders.
Scenario 2: Aggressive Strategy
Higher risk, faster growth. Higher volatility and risk of ruin.
What this means: Aggressive 2% risk with 50% win rate and 3:1 R:R gives faster growth but higher volatility. Over 12 months (240 trades), expect 240% return. However, higher risk means higher chance of significant drawdowns or ruin.
Frequently Asked Questions
When should I use this tool?
Use this tool to project long-term account growth based on your trading strategy. Input your risk per trade, win rate, and risk/reward ratio to see how your account compounds over time. This helps you set realistic growth expectations and understand the power of compounding.
What is compound growth?
Compound growth means your returns build on previous returns. If you start with $10,000 and make 10% in month 1, you have $11,000. If you make 10% in month 2, you make 10% on $11,000 (not $10,000), giving you $12,100. Over time, compounding accelerates growth exponentially.
How is compound growth calculated?
For each trade, the account grows or shrinks by the risk percentage times the risk/reward ratio (for wins) or by the risk percentage (for losses). After N trades: finalAccount = initialAccount × (1 + returnPerTrade)^N. The return per trade is calculated from win rate and risk/reward ratio.
What is compound annual growth rate (CAGR)?
CAGR is the annualized return rate that would give you the same final result. Formula: CAGR = ((finalAccount / initialAccount)^(1/years)) - 1. It smooths out volatility and shows your true annual return. A 50% return over 2 years = 22.5% CAGR.
How does risk per trade affect growth?
Higher risk per trade = higher potential growth but also higher potential losses. 2% risk per trade with 55% win rate and 2:1 R:R gives steady growth. 5% risk per trade gives faster growth but higher volatility and risk of ruin. Most professional traders use 1-2% risk per trade.
What's the difference between best case and worst case?
Best case assumes all trades are wins (unrealistic but shows maximum potential). Worst case assumes all trades are losses (shows maximum risk). Expected case uses your win rate to calculate realistic outcomes. The actual result will be somewhere between best and worst, closer to expected.
How many trades do I need for accurate projections?
Compound growth projections are most accurate with 50-100+ trades. With fewer trades, variance is high and actual results may differ significantly. The more trades, the closer actual results will be to expected projections. Use this tool for long-term planning, not short-term predictions.
What if my win rate or risk/reward changes over time?
This tool assumes constant win rate and risk/reward. In reality, these may change as you improve or market conditions change. Recalculate periodically with updated numbers. The projection is a snapshot based on current performance, not a guarantee.
How does this relate to Trade Expectancy Calculator?
Trade Expectancy shows expected value per trade. Compound Growth shows how that expectancy compounds over time. They're related — positive expectancy leads to compound growth, negative expectancy leads to compound losses. Use Trade Expectancy to evaluate strategy, Compound Growth to project long-term results.
What's a realistic CAGR for trading?
Most professional traders achieve 20-50% CAGR. Exceptional traders achieve 50-100% CAGR. Above 100% CAGR is extremely rare and usually involves high risk. Most retail traders lose money (negative CAGR). Focus on consistency over high returns — 30% CAGR consistently is better than 100% one year and -50% the next.
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