Gold Compounding Calculator
What could your gold trading account become? Enter your starting balance, expected monthly return and time horizon — see the month-by-month growth, total profit, and why compounding is the quiet engine behind every serious trading plan.
Projections are hypothetical — not promises. This calculator shows the math of compounding. Real trading has losing months, drawdowns and fees. A 5% monthly return compounded is exceptional; anyone promising it risk-free is selling you something. See realistic expectations ↓
What is a realistic monthly return?
Compounding math is honest — but the input return is where most people fool themselves:
1–3% / month: strong, professional-level consistency. Few retail traders sustain this.
5% / month: exceptional — roughly 80% per year compounded. Treat as a stretch goal, not a plan.
10%+ / month: lottery math. Possible for a month or two; virtually nobody sustains it without blowing up.
The honest use: model 1–3% to size your expectations, then try to beat the model — not the other way round.
How the calculation works
Each month: Balance = Balance × (1 + r) + Deposit · r = Monthly Return ÷ 100
Total Deposits = Monthly Deposit × Months
Total Profit = Final Balance − Starting Balance − Total Deposits
Growth Multiple = Final Balance ÷ (Starting Balance + Total Deposits)
Worked example
$1,000 at 5% for 12 months, no deposits: month 1: 1000 × 1.05 = $1,050.00 · month 2: 1050 × 1.05 = $1,102.50 · … · month 12: $1,795.86 · profit $795.86
Same + $100/month deposit: each month's deposit also compounds afterwards · final $3,387.57 · deposits $1,200 · profit $1,187.57
Assumptions & limitations
- Constant return every month is unrealistic. Real trading has red months. This model shows the ceiling, not the promise.
- No costs included: spread, commission, swap, taxes and withdrawals are all ignored.
- Deposits are end-of-month. A deposit added mid-month would compound slightly more; the difference is small.
- Months are capped at 120 (10 years) — beyond that the projection is fantasy, not planning.
- Results are educational only — not financial advice. Past performance never guarantees future results.
Frequently Asked Questions
How does compounding work in trading?
Each month's profit stays in the account and earns its own return next month — profit earning profit. That is why the growth curve bends upward instead of rising in a straight line. The formula is: balance × (1 + monthly return) + deposit, repeated every month.
What monthly return should I enter?
Be conservative: 1–3% per month is strong professional-level consistency. 5% monthly compounds to ~80% a year — exceptional. Anything above 10% monthly is not a plan, it is a hope. Model the modest number first.
Are the projections guaranteed?
No. This is pure math on the numbers you type. Markets do not deliver fixed monthly returns — drawdowns, losing streaks and fees all reduce real results. Use this tool to size expectations, never as a promise.
How do monthly deposits affect the result?
Deposits add twice: they increase the balance directly and every deposited dollar compounds in all following months. Even a small monthly deposit dramatically lifts long-term projections — try $0 vs $100 over 24 months to see it.
Why is the projection capped at 120 months?
Ten years of uninterrupted compounding at a fixed return does not happen in real trading. Beyond 120 months the numbers become fantasy. If you need a longer plan, break it into realistic phases instead.
Does this account for losing months?
No — the model assumes the same return every month. A simple way to stay honest: enter your average monthly return after subtracting your typical losing months, not your best month's return.
Can I use this for my FTMO / FundedNext account?
Yes for planning — but remember funded accounts have daily and overall drawdown limits that can end the account long before the projection plays out. Model conservatively and respect the drawdown rules first; growth second.