Drawdown recovery calculator
A loss and the gain that wins it back are not the same size. Lose 50% and you need +100% to get back. Enter a loss %, or your balance and peak, to see the gain needed to recover. Nothing you enter is sent anywhere.
For planning and education, not financial advice. This tool does the arithmetic only. It does not tell you what to trade or how much to risk, and it does not predict whether a loss will be recovered.
Result
Drawdown recovery table (10% to 90%)
Start from a balance of 100. "Growth needed" is how many times the remaining balance has to grow.
| Drawdown | Gain needed | Balance left | Growth needed |
|---|---|---|---|
| 10% | +11.11% | 90 | ×1.11 |
| 20% | +25.00% | 80 | ×1.25 |
| 30% | +42.86% | 70 | ×1.43 |
| 40% | +66.67% | 60 | ×1.67 |
| 50% | +100.00% | 50 | ×2.00 |
| 60% | +150.00% | 40 | ×2.50 |
| 70% | +233.33% | 30 | ×3.33 |
| 80% | +400.00% | 20 | ×5.00 |
| 90% | +900.00% | 10 | ×10.00 |
How to calculate the gain needed to recover a drawdown
- Gain needed = 1 ÷ (1 − loss) − 1, with the loss as a decimal. 10% → 1 ÷ 0.90 − 1 = 11.11%. 25% → 1 ÷ 0.75 − 1 = 33.33%. 50% → 1 ÷ 0.50 − 1 = 100%.
- Drawdown from your balance = (peak − current balance) ÷ peak. The amount back to the peak is peak − current balance, and the gain needed is that amount ÷ current balance.
- Winning trades (estimate) = ln(1 ÷ (1 − drawdown)) ÷ ln(1 + risk × R), rounded up. Each win is assumed to add risk × R of the current balance, so wins compound.
The gain grows faster than the loss because it is earned on a smaller balance. Up to about 20% the two numbers stay close; past 50% the gain needed climbs steeply.
Worked examples
1. From a loss %
A 25% drawdown: 1 ÷ (1 − 0.25) − 1 = 0.3333 → +33.33%. On $10,000, a 25% loss leaves $7,500, and $7,500 × 1.3333 = $10,000.
2. From your balance and peak
Peak $10,000, balance now $8,000. Drawdown = $2,000 ÷ $10,000 = 20%. Amount back to the peak = $2,000. Gain needed = $2,000 ÷ $8,000 = 25%.
3. Winning trades, as a rough estimate
Same 20% drawdown, 1% risk per trade, average win 2R. Each win adds about 2% of the balance: ln(1.25) ÷ ln(1.02) = 11.27 → 12 winning trades with no losses in between. Each losing trade in between (−1%) adds about 0.51 more wins. Real trades differ, so treat this as arithmetic, not a forecast.
Enter the same numbers above and you get the same results.
FAQ
Why does a 50% loss need a 100% gain?
The gain is earned on the smaller balance that is left. $10,000 that falls 50% becomes $5,000, and $5,000 has to double (+100%) to reach $10,000 again.
What is the formula for the gain needed to recover?
Gain needed = 1 / (1 - loss) - 1, with the loss as a decimal. For a 25% loss: 1 / 0.75 - 1 = 0.3333, so you need +33.33%.
How is drawdown worked out from my balance?
Drawdown = (peak balance - current balance) / peak balance. With a peak of $10,000 and a balance of $8,000, the drawdown is 20%, the amount back to the peak is $2,000 and the gain needed is $2,000 / $8,000 = 25%.
How is the number of winning trades estimated?
Each win is assumed to add risk % x average R of the current balance, so the balance grows by (1 + risk x R) per win. Wins needed = ln(1 / (1 - drawdown)) / ln(1 + risk x R), rounded up. It ignores losing trades, costs and slippage, so treat it as a rough planning figure only.
Why is 100% not accepted?
At a 100% loss nothing is left, and no percentage gain on zero brings the balance back. The calculator accepts losses from 0% up to, but not including, 100%.
Does it work for stocks, crypto or funds?
Yes. The recovery math is the same for any balance that moves in percentages, whether it is a trading account, a stock portfolio or a fund. Fees, taxes and deposits or withdrawals are not included.
Is this financial advice?
No. It shows arithmetic for planning and education, not financial advice. It does not suggest what to trade, how much to risk, or whether you will recover a loss.
The calculations are covered by tests. Results are arithmetic for planning and education, not financial advice. Past results do not tell you future results.