Forex Compounding Calculator

Calculate the growth of your forex trading account over time with compound interest. See how your initial capital can grow with a fixed win rate, risk per trade, and number of trades.

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How to use this tool?

How to Use the Forex Compounding Calculator

This calculator estimates your final capital after a series of trades using fixed fractional position sizing and a constant win rate. Follow these steps:

  1. Enter Initial Capital ($) – Your starting account balance (e.g., $1,000). Must be a positive number.
  2. Enter Win Rate (%) – Your expected percentage of winning trades (e.g., 60 for 60%). Must be between 0 and 100.
  3. Enter Risk Per Trade (%) – The percentage of your current capital you risk on each trade (e.g., 2 for 2%). Must be between 0.1 and 100.
  4. Enter Reward:Risk Ratio – The ratio of potential profit to risk (e.g., 2 means you aim to gain 2x what you risk). Must be a positive number.
  5. Enter Number of Trades – The total trades in your sequence (e.g., 100). Must be a positive integer.
  6. Click "Calculate" or press Enter – The results appear on the right:
    • Final Capital – Your projected account balance after all trades.
    • Net Profit – The dollar gain or loss.
    • Total Return – The percentage change from your initial capital.

Note: All inputs must be positive numbers. Win Rate and Risk Per Trade are percentages (do not include the % symbol). The calculator assumes you reinvest all profits and risk a fixed fraction of your current capital each trade.

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Frequently Asked Questions

Forex compounding is the process of reinvesting your profits to generate exponential growth over time. This calculator assumes you risk a fixed percentage of your current capital on each trade.

The formula is: Final Capital = Initial Capital * (1 + (Win Rate * Reward:Risk Ratio * Risk Per Trade) - (1 - Win Rate) * Risk Per Trade) ^ Number of Trades. It assumes a constant win rate and risk percentage.

If win rate is 0%, the growth factor becomes 1 - Risk Per Trade, and your capital will decrease exponentially with each trade, potentially reaching zero.

Reviewed by Experts

Carlos Bicho

Carlos Bicho

Financial Advisor

Private Banker & Financial Advisor

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Danilson Melicio

Danilson Melicio

Financial Advisor

Financial Markets Investor

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Eurico José Kiala

Eurico José Kiala

Mathematician

Teacher

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Francisco Saramango

Francisco Saramango

Board Financial Advisor

Financial Management and Accounting, Financial management and accounting

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Juliana Mayorca

Juliana Mayorca

Financial Advisor

Board-Level Advisor

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