## Compounding Calculator

With MiladFX Live Market Charts, you can follow the price action of FX pairs, cryptocurrencies, indices, and more in real time.

Use MiladFX Forex Compounding Calculator to see how a trading account can increase over time with a specific gain percentage each deal.

## What is a Compounding Calculator for Forex?

A forex compounding calculator may be used to simulate how a trading account can develop over time by compounding the original equity and profitable trades with a given gain %. It operates by imitating the compounding and reinvesting of the account’s overall equity gain percentage.

Traders can use this calculator to enter settings to precisely determine the compounding results of a series of winning transactions over time.

Using MiladFX calculator, traders may see how powerful gains compounding can be, and how a modest gain percentage of 2% (for example) each trade can turn an account’s initial capital into a significant amount of cash over time.

## How to Use the Compounding Calculator for Forex?

The trader’s original account equity is represented by the starting balance. Let’s say I have a $1,000 starting balance in the account base currency.

Number of periods: Traders can replicate a winning strike of x consecutive winning trades using the number of periods parameter. Let’s say I have a string of six winning deals in a row.

Gain percent per period: The calculator’s most essential field! This variable can be used to model the gain % over any compounding time. It can be employed by a trader who makes 5 trades each day with a return target of 0.05 percent every deal.

It can also be used by a trader who makes five weekly deals and aims for a 1% return per trade, or a long-term trader who makes 12 trades per year and aims for a 5% return per trade. I’m assume a gain percentage of 2% per period for this example.

**After that, I’m pressed the “Calculate” button.**

The end result is “The Ending Balance,” which is calculated by multiplying the gains of six straight wins by the “Total Gain” percentage.

After compounding the earnings of 6 consecutive winnings, an initial equity of 1,000 units in any account currency has grown to 1,126.16 units.

This means that the account balance has risen by 12.6 percent by compounding just 6 winning trades and taking a minimal profit percentage of only 2% per trade.

A complete description of how each compounded trade raised the account balance, how much each compounded trade increased the account balance in total percentage, and the ending account balance can be found in the results above.