Compounding Calculator
See how consistent monthly returns compound into life-changing wealth over time. The most powerful concept in trading.
Compounding means reinvesting profits so future returns are earned on an ever-growing base. Einstein reportedly called it the "eighth wonder of the world."
A trader making just 3% per month consistently grows ₹1 lakh to ₹5.8 lakhs in 5 years and ₹34 lakhs in 10 years — without adding any capital. Consistency beats occasional big wins every time.
Realistic monthly targets: 3–5% is achievable. 10%+ per month is extremely rare and unsustainable. Be deeply skeptical of anyone promising such returns.
The Trading Compounding Calculator projects how your trading capital can grow over time through consistent monthly returns and reinvestment of profits. Compounding is the mathematical process where returns are earned not just on the original capital but on all previously accumulated profits — creating exponential rather than linear growth. For NSE traders, compounding is the most powerful long-term wealth building tool available. A trader who achieves a consistent 3% monthly return and reinvests all profits grows ₹1 lakh to ₹5.8 lakhs in 5 years and ₹34 lakhs in 10 years — without adding a single rupee of additional capital. This demonstrates why consistency matters infinitely more than occasional big wins. The calculator also benchmarks your strategy returns against Fixed Deposits (7%), NIFTY 50 index (13% historical CAGR), and your own strategy — making it immediately clear whether active trading is generating enough alpha to justify the time and risk compared to passive alternatives.