What is a Compounding Calculator?
A Compounding Calculator is used to simulate how to reinvest profits from winning trades in a trading account, with a preset percentage of return.Over timecompound interest growth.
It reveals the astonishing power of compounding, even a 5% return on each transaction can turn a limited investment into a substantial fortune.
Instructions for Using the Compounding Calculator
Input
- Opening Balance：You can enter your initial investment amount, which is your starting capital.In the examples,Taking $1,000 as an example.
- Number of Periods：Enter the number of periods you plan to invest in, and simulate the profit of N rounds of trading. For example, take 6 periods.
- Percentage of Profit per Period：Key fields of the calculator, enter of expected return per period.For example,taking 5% as an example.
Then, we click the “Calculate” button.
Result
- End-of-period Balance：The calculator will display the final value of your investment given the number of periods and the rate of return.
- Total Return (Percentage)：The calculator will also display the total return of your investment in percentage.
In the example, through 6 consecutive profitable trades with each trade achieving a 5% profit percentage, the account balance grew by 34.1%. The above results also detail how each compound trade increases the account balance, the total each compound trade, and the account balance after the end.