Forex Compounding Calculator

Calculating forex earnings

To calculate the compound interest earnings from your forex trading, you simply enter your starting balance and the percentage gain you earn on your trades each month (or week) into the calculator, along with the time period in months. The calculator then projects your future earnings by applying the compounding formula to your inputs.

Note that calculations are based on the assumption that the same percentage gain is made consistently and that no withdrawals are made at the time of compounding. These are simplified projections designed to give you an idea of the potential growth of your trading account.

What is forex?

Forex trading (also known as FX trading or foreign exchange trading) involves buying and selling currencies on the foreign exchange market for our financial institutions, corporations, governments, and individual traders who are looking to profit from changes in currency exchange rates.

Multiple currency pairs

Whether the base currency is the US Dollar, the Euro, British Pound or Japanese Yen, our forex compounding calculator works with all currencies. Simply enter the relevant currency symbol (e.g. $, £, € or ¥) using the currency selector at the top of the calculator.

See also: Smybol lookup resources.

Example of forex compounding 📊

Let's say that you begin your forex currency trading with a balance of $2,000 and you're looking for a projected profit of 5% per month. To calculate a projection for earnings after 12 months, your calculation might look like this:

• Principal (P) = 2000
• Rate as decimal (r) = 5/100 = 0.05
• Time in months (t) = 12

Adding these into our compounding formula:

To get a figure for profits or earnings, we deduct the principal amount ($2000) from our calculation result. This means that the compounded profit/earnings projection for your forex trading works out to be $1591.71.