BullWhat is compounding?
Compounding means each gain is added to the balance, so the next gain is calculated on a bigger number. Over many periods the growth curve bends upward, which is why small regular returns can become large over time.
Formula
Example
1,000 USDT growing 2% per week for 52 weeks ends at about 2,800 USDT. Without compounding (taking the 20 USDT profit out every week) you would only have 2,040 USDT.
A reality check
This tool is useful for seeing the effect of compounding, but it assumes the same gain every period with no losing weeks. Real trading does not work like that. A steady 1% per day would turn 1,000 into more than 37,000 in a year, a result almost no trader achieves. Use realistic numbers and remember that one large loss can undo many small gains.
Frequently asked questions
What should I enter as a period?
Any unit you like: days, weeks or months. Just keep the rate and the number of periods in the same unit.
Can I add monthly deposits?
Yes. Use the deposit field. It is added at the end of each period.
Is 1% per day realistic?
For almost all traders, no. Treat high daily returns as a what-if, not a plan.
Results are estimates for education only and are not financial advice. Always check the numbers on your exchange before you trade.
Compounding in Trading: Why 1% a Day Is Not Realistic
How compounding works for traders, why small consistent returns grow large, and why claims of 1% per day are a red flag.