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📈 Compound Interest Calculator

See what consistent monthly returns can do for your trading account. The power of compounding is the 8th wonder of the world.

Answer Capsule: Compound interest grows your account exponentially. At 5% monthly return, $10,000 becomes $17,958 in 12 months. The key is consistency —small gains compounded over time outperform occasional large wins.

How Compound Interest Is Calculated

Formula: Final Amount = Principal × (1 + Monthly Return)^Months

Example: $1,000 compounded at 5% monthly for 12 months:
$1,000 × (1.05)^12 = $1,795.86 —nearly 80% return

Trading takeaway: A 5% monthly return sounds modest, but compounding it over a year nearly doubles your account. Consistency —not home runs —builds wealth. A trader making 3% monthly with proper risk management outperforms one chasing 20% moonshots who eventually blows up.