Where does the benchmark return number come from?

You enter it yourself. Long-run historical averages for broad U.S. stock index funds are commonly cited in roughly the 7% to 10% range before inflation, but this tool does not look up or guarantee any specific figure.

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How much am I giving up by underperforming an index fund while I actively trade?

Q: How much am I giving up by underperforming an index fund while I actively trade?

Enter your account size, your own annualized return, a benchmark index return assumption, and a number of years. The tool compounds both paths and shows the dollar and percent difference between them.

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Jason Parker, Founder of Trading Habits

Enter Your Numbers

Use your own honest annualized return, not your best month. Compounds annually with no added contributions or withdrawals.

Your Result

Fill in the fields on the left and click Compare My Path to see the compounding difference.

How this is calculated

Each path compounds your starting balance annually at a fixed rate: your entered return for one path, your benchmark assumption for the other. Neither path adds or removes money along the way.
This is a simplified comparison. Actual index fund returns vary year to year and are never a straight line, and your own trading return may vary from year to year as well.
This tool doesn't account for taxes, fees, or commissions on either path, which can affect each option differently depending on your account type and how often you trade.
A positive dollar difference means the benchmark assumption you entered outpaced your entered return over the period. A negative difference means your entered return outpaced the benchmark.

Risk & liability disclaimer: This tool only performs simple arithmetic on the numbers you enter. It is not financial, investment, or tax advice, and it does not access your broker account or verify your actual fills. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. Always verify results independently and consult a licensed professional before making any trading or financial decision.

How much am I giving up by underperforming an index fund while I actively trade?

Enter Your Numbers

Your Result

How this is calculated

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