What is the trading compound interest calculator?
Compound interest is what happens when you reinvest profits - the next period's gain is calculated on a larger base.
When to use it
Goal-setting and reality-checking. A "modest" 3%/month compounds to ~42%/year and ~1,500% over 10 years. The math is more powerful than most realise.
Formula
Final Equity = Principal × (1 + Monthly Return)^Months.
Worked example
$10,000 at 3%/month for 24 months = $10,000 × 1.03^24 = $20,328 (more than double).
FAQ
Why do most retail accounts not compound?
Because volatility of returns destroys geometric mean. A +50% / −50% sequence leaves you down 25%, not flat. Lower variance + steady returns is the compounding superpower.
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