How it is calculated
Each month the balance changes by the return percentage of the balance at the start of that month, then the deposit is added.
The yearly rate is (1 + monthly return)¹² − 1, so 2% a month is about 26.8% a year, not 24%.
Enter a negative return to see how a losing month repeated eats into the account.
Balanceₙ = Balanceₙ₋₁ × (1 + r) + Deposit
FAQ
Is a fixed monthly return realistic?
No. Trading returns arrive unevenly, with losing months and drawdowns. Use the table to understand the maths of growth, then test the drawdown side with the drawdown calculator before planning around any number.
Should I compound by raising lot size?
Risking a fixed percentage of the current balance compounds automatically: lots grow after wins and shrink after losses. A lot size calculator turns that percentage into a position size for each trade.
Why do EA sellers quote monthly returns?
A monthly figure compounded over a year looks large. Ask for the maximum drawdown next to it, and how many months the test covers. A high return with a deep drawdown is a high-risk system.