Compounding & Drawdown Simulator
A compounding calculator shows how contributions and reinvested returns grow an account over time — and what a losing streak does to it. Set a monthly or annual return, add a drawdown scenario, and see the projected value, a year-by-year table, a growth curve, and the recovery math behind every loss. Built for traders and long-term investors.
Plan
See how contributions plus compounding grow — then stress-test it with a drawdown.
$10.0K
$500
What if the first months lose money instead of gaining?
Losses hurt asymmetrically: the gain needed to break even grows fast. Gain = loss ÷ (1 − loss).
Assumes a fixed return every month (reality fluctuates), before taxes, fees, and inflation. A projection, not a guarantee.
Your risk numbers only matter if you track them. Liquiditrax auto-journals every MT4/MT5 trade to Notion.
Join the waitlist →Educational calculator. Not financial advice. Results are estimates.
Frequently asked questions
- What is compound growth?
- Compounding is when your returns earn returns of their own. Each period's gain is added to the balance, so the base you grow from gets bigger over time. With regular contributions on top, the balance can accelerate over long horizons.
- Should I use a monthly or an annual return?
- Use whichever you think in. Traders often quote a monthly return, while long-term investors use an annual one. This tool lets you switch: an annual rate is applied as 1/12 per month (nominal), and a monthly rate compounds directly — the caption shows the equivalent.
- Why do drawdowns matter so much?
- Losses are asymmetric: a 50% loss needs a 100% gain just to break even, because you're rebuilding from a smaller base. The drawdown stress test shows how an early losing streak drags the final balance, and the recovery math shows the gain each loss requires.
- How is the projection calculated?
- Each month the balance is multiplied by (1 + monthly rate) and your contribution is added. The drawdown scenario replaces the rate with a negative one for the first N months. It assumes a fixed rate every month, before taxes, fees, and inflation.
- What return should I assume?
- Be conservative. Broad stock-market averages have historically been high single digits per year over long periods, and past performance doesn't guarantee future results. Lower, steadier assumptions make the projection more useful than optimistic ones.