How compounding is calculated
With compounding, gains are added back to the balance and earn returns themselves. Each period: new balance = previous balance × (1 + rate). Start with 10,000,000 and earn 1% a day for 20 days: 10,000,000 × 1.01²⁰ ≈ 12,201,900.
Inputs
- Period unit: how often the return is applied — days, weeks, months or years.
- Added each period: a recurring deposit added at the end of every period.
- Costs: fees and slippage per period, subtracted from the return.
- Tax: applied only to the gain of profitable periods (no credit for losing periods).
Win-rate mode
Returns are never the same every period. With a 50% win rate, +10% on wins and −10% on losses, the arithmetic average is 0% but the geometric rate — what actually compounds — is about −0.5%. A loss needs a bigger gain to recover (−50% needs +100%). This mode shows that gap in numbers.
Reading the numbers
Long chains of high per-period returns reach absurd figures quickly: 1% a day is about 3,678% a year. This tool shows arithmetic, not forecasts — drawdowns, costs and changing tax rules matter a great deal in practice.
FAQ
Is daily compounding different from monthly?
Only the interval changes; the formula is identical. Pick Days or Months as the period unit.
Can I model recurring deposits?
Yes. Enter an amount under 'Added each period'; it is added at the end of every period and compounds from the next one.
How is tax applied?
The chosen rate is deducted from the gain of each profitable period; losing periods get no tax credit. Real taxation depends on the product and your jurisdiction, so treat it as a rough guide.
Can I share a result?
Use Copy result link — the address carries your inputs.