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Enter values above, then calculate. Use the output to inspect the assumptions—not to predict a return.
Tool / loss mathematics
Drawdown recovery calculator
Enter a starting value and percentage drawdown to see the remaining value, cash loss and gain required to return to the starting point. The tool explains recovery arithmetic; it does not estimate how likely or how quickly a recovery will occur.
Runs in your browserNo account · No API key
local only
How to use it
Numbers are clearer when the assumptions are visible.
Start with the default example. Change one input at a time and notice which part of the result moves. Then read the explanation below before using any real-world number.
- Use your account currency consistently.
- Include costs and uncertainty outside the simple model.
- Verify the product’s own contract or fee rules.
Quick answer
The short answer
A loss and the gain needed to recover are not equal percentages. After a 20% drawdown, the remaining 80 must gain 25% to return to the starting value. After a 50% drawdown, the remaining capital must gain 100%.
Why the recovery percentage is larger
A drawdown reduces the base on which the next percentage is earned. Losing 20% from 10,000 leaves 8,000. The 2,000 needed to recover is 25% of 8,000, not 20%.
As drawdown approaches 100%, the required recovery rises sharply. This asymmetry is one reason position size and diversification matter before a loss occurs.
Working modelRequired recovery % = drawdown % ÷ (100 − drawdown %) × 100
Use drawdown as a risk limit, not a forecast
The result says nothing about future return, time to recovery or whether the asset survives. Compare several drawdowns and decide which loss would disrupt your plan, liquidity or behaviour.
Portfolio deposits and withdrawals change account value, so separate cash flows from investment performance when measuring a real drawdown.
- Measure peak-to-trough consistently.
- Separate contributions from returns.
- Review concentrated positions.
- Never chase losses to force a recovery.
Primary references
Continue with original sources.
These links provide definitions and current context. Product rules, regulation and network details can change, so verify time-sensitive information at the source.
Common questions
Before you move on
Why does a 50% loss need a 100% gain?+
Because the remaining half must double to reach the original value.
Can the tool predict recovery time?+
No. It only calculates the percentage and cash arithmetic.
Does adding new money count as recovery?+
It raises account value, but it is a contribution rather than an investment return.