Compound Calculator
Compare regular compounding with leveraged ETF compounding.
A realistic compound calculator reflecting volatility decay and hidden costs.
Investment Settings
Higher volatility increases leveraged ETF volatility decay losses.
Compound Results
25.5M
+154.7%
26.6M
+165.6%
19.9M
+99.1%
Yearly Portfolio Value Trend
Key Insights
- At 20% volatility, 3x leverage actual return is only 8% level of the theoretical 3x.
- Additional annual loss from volatility decay: 2x -4.00%, 3x -12.00%
- Total annual cost including hidden costs: 2x +5.7% / 3x +10.9%
- Under current conditions, 3x leverage results in lower final value than 1x. Try reducing volatility or increasing returns.
Annual Cost Breakdown (US ETF, SOFR 4.3%)
| Item | 1x | 2x | 3x |
|---|---|---|---|
| Expense Ratio | 0.20% | 0.64% | 0.82% |
| Borrowing Cost | 0% | 4.80% | 9.60% |
| Rebalancing Cost | 0% | 0.30% | 0.45% |
| Volatility Decay (Annualized) | 0% | -4.00% | -12.00% |
| Total Annual Cost | 0.20% | 9.74% | 22.87% |
Volatility decay = 0.5 × L × (L−1) × σ² | Current volatility 20%
Learn More
Verify with Historical Data
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LearnLearn About Compounding Effects
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