Drawdown recovery calculator: the gain needed after a loss
Losses are harder to recover than they look. This calculator shows the gain needed to get back to where you started after a fall.
How to use this calculator
- Enter the loss from your peak, as a percentage.
- Read the gain needed to recover.
- Look at the table to see how the requirement grows faster as losses get larger.
Worked examples
Example 1
A portfolio that has fallen 30% from its peak.
You enter
| Loss from the peak | 30% |
|---|
You get
| Gain needed to get back to the peak | 42.86% |
|---|
Example 2
A fall of 50%.
You enter
| Loss from the peak | 50% |
|---|
You get
| Gain needed to get back to the peak | 100% |
|---|
How it works
A 10% loss needs an 11.1% gain; a 50% loss needs a 100% gain. The recovery gets disproportionately harder, which is why limiting any single loss matters so much.
This is the arithmetic of losses, not a forecast of when a recovery will happen.
Formula
Gain needed = 1 / (1 - loss) - 1.
Common questions
Why not just the same percent?
After a fall, the gain applies to a smaller base.
How long will recovery take?
No one can say; it depends on returns.
How does this relate to position sizing?
Smaller losses per trade keep drawdowns shallow and easier to recover from.
Calculators give estimates for learning and planning. They are not financial, tax, legal or medical advice, and results depend entirely on the numbers you enter. Check rates, limits and rules with an official source or a qualified professional before acting.