Compound Interest Calculator
What Is Compound Interest Calculator?
A compound interest calculator is used to simulate how profits from winning trades in a trading account can compound over time with a preset percentage of return. It reveals the astonishing power of compound interest, which can turn a limited investment amount into a substantial fortune, even with a return rate of only 5% per trade.
Instructions
Input
- Starting balance Enter the initial investment amount, for example, $1,000.
- Number of periods Enter the number of periods, simulating N rounds of trading gains, for example, 6 periods.
- Gain % per period Enter the expected gain percentage per period, for example, 5%.
Result
- Ending balance The calculator will display the final value of your investment given the number of periods and the rate of return.
- Total Gain The calculator will also show the total gain of your investment, expressed as a percentage.
In the example, six successful trades each yielding 5% profit led to a 34.1% increase in account balance.
Results detail each compound trade boosts the account balance, total percentage of compound trade, and final balance.