Concept
How compounding works.
Each month’s return builds on the previous month’s balance — not the original deposit. A steady percentage looks modest on the row, but the total grows much faster than people expect.
The simplest example
Say you start with $10,000 and the fund returns +10% every month for two months. If you just added the months up, you’d get +20%. But that’s not what happens.
Month 1
- Start
- $10,000
- Return
- +10%
- End balance
- $11,000
Month 2
- Start
- $11,000
- Return
- +10%
- End balance
- $12,100
Two +10% months don’t equal +20% — they equal +21%. The extra 1% is the second month’s gain on the previous gain. That’s compounding.
At real-fund numbers
GoldRock’s target range is 15–35% per month. Even at the low end, compounding stacks fast:
Starting with $10,000 · what it becomes
| Monthly | 3 months | 6 months | 12 months |
|---|---|---|---|
| +15% | $15,209 | $23,131 | $53,503 |
| +20% | $17,280 | $29,860 | $89,161 |
| +25% | $19,531 | $38,147 | $145,519 |
| +30% | $21,970 | $48,268 | $232,981 |
| +35% | $24,604 | $60,534 | $366,442 |
Hypothetical illustration of constant monthly returns. Real months vary — some land lower, some higher. The strategy targets, not guarantees, the headline range. Past performance is not indicative of future results.
Why the chart curve gets steep
The headline curve on the dashboard isn’t a straight line for the same reason. Every monthly bar is building on the new total, so the absolute dollar gain gets larger every month even when the percentage stays identical.
A 25% month on a $10k account is a $2,500 gain. The next 25% month is $3,125. Three months later it’s $4,883. The percentage is the same — the curve only looks “steeper” because the base is bigger.
Try the math yourself
Open the compounding calculator →
See the live curve
View the public Goldbook →