Free tool
Compounding calculator
See how a steady monthly return compounds, and how unrealistic “10% a month” promises really are.
Assumes the same return every month. Real results vary and include losing months.
| Period | Balance | Cumulative trading gain |
|---|
Conversions use reference rates from 6 October 2026. Your broker’s live prices will differ slightly.
Compounding cuts both ways
Compounding turns small consistent gains into large numbers over time, but it also magnifies losses. A 50% drawdown needs a 100% gain to recover, as the drawdown calculator shows. Protecting capital comes first. See risk management.
FAQ
What is a realistic monthly return in forex?
Consistent professional returns are usually measured in low single-digit percentages per month at most, with losing months along the way. Be very sceptical of anyone advertising 10%+ every month. Try it here and see what that would turn $1,000 into in five years.
Does this account for losing months?
No. It assumes the same return every month, which no real strategy achieves. Treat the result as an upper bound, not a forecast.
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