A 50% loss needs a 100% gain to recover. Enter your peak balance and your balance now to see your own numbers.
Drawdown = (peak − current) ÷ peak
Gain needed = peak ÷ current − 1
Losses and gains are not symmetric. Lose 10% and you need 11.1% to get back. Lose 50% and you need 100%. Lose 90% and you need 900%. The deeper the hole, the steeper the climb, which is why limiting the size of the worst loss matters more than the size of the best win.
| Loss from the peak | Gain needed 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% |
Questions people ask
How do I calculate drawdown?
Subtract the current balance from the peak and divide by the peak. A drop from $10,000 to $7,500 is a 25% drawdown.
How much do I need to gain to recover a 50% loss?
100%. Recovery needs peak divided by current, minus one. After a 50% loss your balance is half the peak, so it has to double.
What is a maximum drawdown?
The largest peak-to-trough fall in a period. It is a better measure of pain than average return, because it shows how bad it got before it got better.