Drawdown and recovery calculator
Updated 2026-09-19
Drawdown is the drop of the account from its peak. Recovery isn't symmetrical: after a 50% loss you need +100%, not +50%. That is why risk management protects capital before chasing returns.
Gain needed to recover: +25.0%
| Loss | Gain to recover |
|---|---|
| -5% | +5.3% |
| -10% | +11.1% |
| -20% | +25.0% |
| -30% | +42.9% |
| -40% | +66.7% |
| -50% | +100.0% |
| -60% | +150.0% |
| -70% | +233.3% |
| -80% | +400.0% |
| -90% | +900.0% |
Educational tool: results are estimates and depend on the values you enter. Not financial advice. Trading involves risk.
The formula
Required gain = 1 ÷ (1 − loss) − 1. With a 20% loss you need 1 ÷ 0.8 − 1 = +25%.
Why it is asymmetric
After a loss, the percentage applies to a smaller balance. So the deeper the drawdown, the more time and the higher the returns recovery needs.
How to limit drawdown
- Risk a small percentage per trade (0.5-1%)
- Set daily and weekly loss limits
- Reduce size after a losing streak
- Don't try to make up a loss by raising risk (revenge trading)
Frequently asked questions
What is maximum drawdown?
It is the largest peak-to-trough loss of capital over a period. In backtests it is one of the most important risk measures.
How much drawdown is acceptable?
It depends on your tolerance: many traders try to stay under 10-20%. Define it before you trade.
Why does -50% need +100%?
From 10,000 to 5,000 (-50%): to get back to 10,000 you must double, i.e. +100%.