Drawdown calculator

Drawdown Recovery Calculator

Losses and gains are asymmetric. After an account falls by a percentage, the gain needed to return to the previous peak is larger than the original percentage loss.

Gain required to recover

25.00%

Percentage gain needed from the reduced balance to return to the prior peak.

Formula

Required recovery gain = drawdown ÷ (100 − drawdown) × 100.

Important limitations

  • •A 50% drawdown requires a 100% gain to recover the previous peak.
  • •The calculation is purely mathematical and does not estimate how long recovery might take.
  • •Risk limits can help prevent a strategy from entering a recovery requirement that is operationally unrealistic.
These calculators provide mathematical outputs only. They do not account for every broker, exchange, product, margin, tax, execution, or market condition and are not financial advice.