See how a trading account grows when a % gain is compounded every trading day, week or month. Add deposits, withdraw a share of profits or a fixed amount, and get the ending balance, equivalent yearly return and a full balance table, with a reality check on what the numbers mean.
Last updated:
Account and gain
$
%
Average % gain each day, week or month (can be negative)
Stock markets ~252; crypto 365
Deposits and withdrawals
$
%
$
Enter your values to see the result.
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How to use the Trading Compound Interest Calculator
Enter your starting balance and the average % gain per period.
Choose the compounding period: each trading day, week or month, and set trading days per year for daily.
Set the duration in periods, months or years.
Add deposits or withdrawals if you plan to add money or take profits out.
Press Calculate growth to see the ending balance, the yearly equivalent and the balance table.
The compounding formula
With a constant gain g per period and no cash flows:
Balance after n periods = Start × (1 + g)n
With a deposit D at the start of each period, the calculator adds D, applies the gain, then takes any withdrawal, one period at a time. Withdrawing a share w of each period's profit is the same as compounding at g × (1 − w).
Example: $10,000 at 0.5% per trading day for 63 trading days (about 3 months): 10,000 × 1.00563 = $13,692. Withdraw half of each day's profit and the effective rate drops to 0.25%, giving 10,000 × 1.002563 ≈ $11,704 plus about $1,704 withdrawn along the way.
What steady gains compound to in one year
Gain per period
Daily (252 days)
Weekly (52)
Monthly (12)
0.1%
28.6%
5.3%
1.2%
0.25%
87.6%
13.9%
3.0%
0.5%
251.4%
29.6%
6.2%
1%
1,127.4%
67.8%
12.7%
2%
14,598%
180.0%
26.8%
5%
about 22 million %
1,164%
79.6%
Keeping the numbers realistic
Averages hide losing periods. A +10% day followed by a −10% day leaves you 1% down, so volatile returns compound to less than their simple average.
Costs compound too. Commissions, spreads and slippage of 0.05% per trade, taken every day, remove about 12% a year.
Taxes on short-term gains are usually charged at ordinary income rates, which slows compounding in taxable accounts.
Use your real track record. Plug in the average gain from at least several months of actual results, and check your edge with a trading expectancy calculation.
Benchmark it. Compare the equivalent annual return with a simple index fund; if the gap looks huge, the assumption is probably too optimistic.
Frequently asked questions
How do you calculate daily compounding for trading?
Ending balance = starting balance × (1 + daily gain)^number of trading days. For example, $5,000 growing 1% every trading day for 252 days becomes 5,000 × 1.01^252 ≈ $61,370. Deposits and withdrawals are applied each period in the calculator.
How many trading days are in a year?
US stock and options markets are open about 252 days a year (365 days minus weekends and roughly 9 to 10 market holidays). Forex trades about 260 weekdays, and crypto trades all 365 days, so the calculator lets you change the number.
Is 1% a day realistic in trading?
Not as a steady rate. 1% per trading day compounds to about 1,127% a year. Broad stock indexes have averaged roughly 10% a year over the long run, and returns of even 30% to 50% a year are rare among professional managers. Real accounts have losing days, fees and taxes.
What is the equivalent annual return?
It converts the per-period gain into a yearly rate with compounding: (1 + gain per period)^periods per year − 1. A 2% weekly gain equals 1.02^52 − 1 ≈ 180% a year.
How do withdrawals affect compounding?
Money withdrawn stops compounding. Withdrawing 30% of each period's profit is the same as compounding at 70% of the gain rate, so a 1% daily gain grows like 0.7% a day. A fixed withdrawal can drain a small account if it is larger than the period's profit.
What is the rule of 72 for trading gains?
Divide 72 by the % gain per period to estimate how many periods it takes to double. At 1% a day that is about 72 trading days; the exact answer is ln 2 ÷ ln 1.01 ≈ 69.7 days.
Are all the tools on FreeToolCabin tested for quality and accuracy?
Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.