Drawdown recovery calculator
A loss and the gain needed to recover from it are not the same size. Enter a drawdown to see the gain that brings the balance back to its high.
How it's calculated
- Drawdown = (peak − current) ÷ peak. From 10,000 to 7,000: 3,000 ÷ 10,000 = 30%.
- Gain needed = drawdown ÷ (1 − drawdown). 0.30 ÷ 0.70 = 42.86%: 7,000 × 1.4286 = 10,000.
- Periods needed at a steady gain g per period = ln(1 ÷ (1 − drawdown)) ÷ ln(1 + g), rounded up. A 50% drawdown at 1% per period: ln 2 ÷ ln 1.01 = 69.66 → 70 periods.
| Drawdown | Gain needed |
|---|---|
| 10% | 11.11% |
| 20% | 25% |
| 30% | 42.86% |
| 50% | 100% |
| 75% | 300% |
| 90% | 900% |
Questions
Why is the gain needed bigger than the loss?
The gain is earned on a smaller balance. After a 50% loss, $10,000 becomes $5,000, and $5,000 has to double — a 100% gain — to get back to $10,000.
Can a 100% drawdown be recovered?
No. With nothing left there is nothing to grow, so the calculator shows no result for a 100% drawdown.
What counts as a period?
Whatever matches your expected gain: a month, a week or a single trade. The calculator assumes the same gain every period, compounded.
Do fees and withdrawals change the result?
Yes. Trading costs and withdrawals reduce the real gain per period, so recovery takes longer. Enter a gain per period after costs for a closer estimate.