Drawdown recovery calculator

A 50% loss needs a 100% gain to recover. Enter any drawdown to see the gain required to return to your starting balance, and an estimate of how long that takes at a fixed return per period.

Why losses and gains are not symmetrical

A drawdown is measured from the peak balance, but the recovery is measured from the lower balance. After a 20% fall, a $10,000 account holds $8,000, and getting back to $10,000 needs $2,000 on $8,000, which is 25%. The formula is:

Gain needed = drawdown ÷ (1 − drawdown)

With 20%: 0.20 ÷ 0.80 = 0.25, or 25%.

DrawdownGain needed to recover
5%5.26%
10%11.11%
20%25.00%
25%33.33%
30%42.86%
40%66.67%
50%100.00%
60%150.00%
75%300.00%
90%900.00%

Small drawdowns need only slightly larger gains. Beyond about 30% the required gain rises steeply, and a 90% loss needs a 900% gain. This is the arithmetic behind keeping risk per trade small.

How long a recovery takes

If you enter a return per period, the calculator estimates how many periods of that return, compounded, would close the gap: periods = ln(1 ÷ (1 − drawdown)) ÷ ln(1 + rate). A 20% drawdown at a steady 2% per month takes about 11.3 months. Real returns are never steady, so treat this as an illustration of scale, not a forecast.

Related tools and guides

Frequently asked questions

How much do I need to gain to recover from a 50% loss?

100%. Half the balance is gone, so the remaining half has to double to get back to the start.

What is the formula for drawdown recovery?

Gain needed = drawdown ÷ (1 − drawdown). A 25% drawdown needs 0.25 ÷ 0.75 = 33.33%.

What is maximum drawdown?

Maximum drawdown is the largest fall from a peak balance to a later low before a new peak is made. It is a common way to judge how much pain a strategy or account has gone through.

How can I limit drawdowns?

Keep the risk on each trade small and fixed, use a stop loss on every position, and avoid adding to losing trades. Smaller risk per trade means a losing streak produces a smaller drawdown.

Calculators are for education and planning. They do not account for your broker's spread, commission, swap or contract terms. Trading forex and CFDs carries a high risk of losing money. Read our risk disclosure.