Compounding calculator for MT5.
Enter the initial balance, the monthly return and the months. Get the final balance, the profit, the money you deposited, the multiple, the effective annual rate and a year-by-year chart. Works with compound or simple interest, and solves the return you need to reach a target.
$10,000 at 5% a month for 12 months, no deposits, becomes $17,958.56: a 1.80x account. The same 5% simple is $16,000. Five percent a month is 79.6% a year, so treat it as a scenario, not a promise.
| Year | Balance | Profit | Deposits |
|---|
Formula: final = initial × (1 + r)^months + deposits, with r = monthly return / 100. Simple interest pays r on the initial balance every month instead. The chart and the table use the same monthly schedule; the calculator assumes a constant return and does not include drawdowns, taxes or fees.
How compounding works
Compounding means the profit of one month is added to the balance and earns with the next month. On $10,000 at 5% a month: month 1 makes $500 and leaves $10,500; month 2 makes 5% of $10,500 = $525; after 12 months the balance is $17,958.56. Simple interest pays $500 every month on the original $10,000 and ends at $16,000.
What the numbers look like
| Monthly return | 12 months | 24 months | 36 months |
|---|---|---|---|
| 1% | 1.13x | 1.27x | 1.43x |
| 2% | 1.27x | 1.61x | 2.04x |
| 3% | 1.43x | 2.03x | 2.90x |
| 5% | 1.80x | 3.23x | 5.79x |
| 8% | 2.52x | 6.34x | 15.97x |
Account multiple, before deposits, taxes and fees. The same table is computed live for your balance and deposits.
A reality check on the monthly return
5% a month is 79.6% a year; 8% a month is 152% a year. Very few traders sustain that for years, and the ones who do take drawdowns along the way. A 30% drawdown needs a 43% gain just to get back to the start, and a losing month is not in this curve. Use a conservative rate for planning; use a high one only to see the scenario.
The rule of 72
To estimate the months needed to double the account, divide 72 by the monthly return: 72 / 5 = 14.4 months; 72 / 3 = 24 months. The exact month is the one in which the balance crosses 2x the initial deposit, and the table shows it.
Deposits change the result
A monthly deposit is added before the next month's return, so it compounds too. It also makes the multiple look smaller: the final balance is compared with the initial one, not with all the money you put in. The Profit and Deposited figures keep the two apart.
Return needed for a target
The box under the table solves the opposite question: what monthly return turns your initial balance (plus deposits) into the target over the same months. $10,000 to $20,000 in 12 months needs about 5.95% a month without deposits; with $100 a month, less. A target that is too far for the time chosen returns no answer: it is not a rate problem, it is a time problem.
What this calculator does not include
It assumes the same return every month. Real accounts have losing months, drawdowns, fees, taxes and slippage; the sequence of returns matters as much as the average. Use it to plan a target and to compare scenarios, not as a forecast of your equity curve.
FAQ
THE COMPOUNDING QUESTIONS THAT COME UP MOST, FROM 5% A MONTH TO THE RULE OF 72.
How does compounding work in forex?
Each month's profit is added to the balance, so the next month earns on a bigger base. $10,000 at 5% a month: month 1 makes $500, month 2 makes 5% of $10,500 = $525, and after 12 months the balance is $17,958.56. Simple interest on the same $10,000 pays $500 every month and ends at $16,000.
What monthly return is realistic?
Sustaining 5% a month is 79.6% a year, and very few traders do it for years. The calculator is a projection, not a promise: it assumes the same return every month, which the market does not deliver. Use a conservative rate for planning and a higher one only as a scenario.
What is the difference between simple and compound interest?
Simple interest pays the return on the initial balance only. Compound interest pays it on the balance plus the profits already earned. At 5% a month for a year, $10,000 becomes $16,000 simple and $17,958.56 compound.
How long does it take to double my account?
With the rule of 72, divide 72 by the monthly return: at 5% a month it is about 14.4 months; at 3%, 24 months. The exact answer comes from the calculator: the month in which the balance crosses 2x the initial deposit.
Do monthly deposits change the result?
Yes. Deposits add to the balance before the next month's return, so they compound too. They also make the multiple look smaller because the final balance is compared with the initial one, not with the total money you put in; the table separates profit from deposits.
How do I calculate the return needed to reach a target?
Enter the target in the lower box: the calculator solves the monthly return that turns the initial balance (plus your deposits) into that target over the same number of months. $10,000 to $20,000 in 12 months needs about 5.95% a month without deposits; with $100 a month, less.
Does this include drawdowns and losing months?
No. It assumes the same positive return every month. Real accounts have losing months, and a 30% drawdown needs a 43% gain to recover. Sequence risk is the reason a smooth compounding curve is a planning tool, not a forecast.
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SignalForge AI is an order-execution tool. We do not provide investment advice. Trading involves risk of loss. This calculator is for information only; a smooth curve is not a forecast.