See how a balance could grow with a steady monthly return and optional monthly deposits. Useful for setting realistic goals.
How compounding works
Compounding means earning returns on past returns. Over time, growth speeds up because each gain is added to the base.
Formula
Each month: new balance = (old balance + deposit) × (1 + monthly rate).
A reality check
Steady monthly returns are rare in trading. Returns vary, and losing months happen. Use this tool to understand the math, not as a forecast. For context, the long run average yearly return of the S&P 500 has been roughly 10 percent before inflation, which is under 1 percent a month.
Frequently asked questions
What is compound growth?
Growth where returns are added to the balance, so future returns are earned on a larger amount.
Is 2 percent a month realistic?
Very few traders achieve it consistently. It equals about 27 percent a year when compounded.
Does this include losses?
No. It assumes the same return every month. Real results vary.
Results are estimates for education and planning. Check contract specifications and costs with your broker before you trade. Disclaimer.
