Who is it for?
Users with reviewable data or a trade sample Anyone testing assumptions before real capital
Risk & Position Sizing
Compound Growth Scenario
Model compound growth using starting capital, assumed return, recurring contributions, fees and multiple scenarios over time.
FreeNo installationEducational & analytical
Free with a TupTrader account
The tool is ready; sign in to run it
The guide and calculation method stay public on this page. Sign-in is only required to open the interactive workspace.
Tool guide
How is compound growth calculated?
Compounding occurs when each period’s return is applied to a balance that already includes prior gains or losses. In trading, a constant return is only a scenario assumption, not a forecast.
Logic / formula
Without contributions: FV = PV × (1+r)^n; recurring contributions compound from their selected timing.
Read the output
Separate final capital into contributed capital and growth generated by compounding.
TT-FT-008 · versioned engine compound-growth@2.0.0 · educational/analytical use; not investment advice.
Full guide, examples, and sources
When should you not rely on it?
A small, incomplete, or cherry-picked sample Using the result as a guarantee of future performance
Logic, formula and methodology
Compounding occurs when each period’s return is applied to a balance that already includes prior gains or losses. In trading, a constant return is only a scenario assumption, not a forecast. Without contributions: FV = PV × (1+r)^n; recurring contributions compound from their selected timing.
Exact iterative compounding with beginning/end contributions, periodic fees, period count, periods per year, equivalent annualized assumption, inflation adjustment, paid-in capital, net growth, and milestone balances.
Worked example
Example
£10,000 with an assumed 2% return for 24 periods
This path shows how a constant 2% compounds on prior capital; the constant rate is only a scenario assumption.
This path shows how a constant 2% compounds on prior capital; the constant rate is only a scenario assumption.
How to read the result
No single metric is sufficient for judgement. Sample size and data quality are part of the result.
Separate final value into paid-in capital and growth component. Compare scenarios to understand sensitivity to return, contributions and drawdown interruptions, and do not treat the result as a forecast.
What the TupTrader version adds
The value of this version is not cosmetic; the result, assumptions and workflow are connected to the practical capabilities below.
- Scenario A/B/C
- Growth curve
- Contribution vs growth decomposition
- Fixed/variable contribution
- Period table
- Drawdown interruption scenario
- Save/compare
Turn the result into a workflow
Related tool →Validate the result with a second tool. Run out-of-sample or Monte Carlo analysis. Record executable rules in the plan.
Common mistakes and limitations
- Overfitting or choosing parameters after seeing results
- Omitting costs and unfavourable trades
- Mixing incompatible samples
- A constant-rate model simplifies taxes, changing returns, irregular withdrawals and the actual return distribution. It is for scenario planning, not a growth promise.
Frequently asked questions
Is beginning-of-period contribution better than end-of-period?
Under a constant positive rate, money contributed earlier compounds for longer; real market returns can also be negative.
Can I multiply a monthly rate by 12 to annualize it?
Exact annual equivalence depends on compounding; simple multiplication is not the same as compounded annualization.
Why is this not a forecast?
Because future returns are unknown and real performance paths are not constant.
Sources and research method
This guide combines the tool’s versioned specification, the earlier TupTrader educational page and the authoritative sources below. External sources are used for definitions and scientific boundaries, not for signals.
- Investor.gov — Compound Interest CalculatorInitial investment, recurring contributions, time horizon, rate and compounding frequency.
This tool is for education, scenario analysis and process control. It is not investment advice, a buy/sell signal or a guarantee of future performance.