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Drawdown & Recovery Calculator

Measure a decline from peak, calculate the gain needed to recover, and explore a hypothetical sequence of losses.

Free to use · No sign-up · Calculations stay in your browser

Enter your assumptions

Display currencyLabels only. No currency conversion is performed; enter all cash amounts in this currency.

Peak valuePositive peak equity or balance; use the same measure throughout.

Current valueFrom zero to the peak. Adjust external cash flows separately.

Loss per period in scenario (%)Fraction of the remaining value, including any costs you model. Zero disables further loss.

Consecutive losses in scenarioOptional scenario: use zero periods to show only current drawdown. Not a probability forecast.

The calculation, explained

Formula and worked example

Drawdown = (peak − current) ÷ peak; recovery = (peak − current) ÷ current

A peak of 10,000 and current value of 8,000 means 20% drawdown. Recovering the 2,000 shortfall requires a 25% gain on 8,000. A 20% gain would reach only 9,600.

Common questions

Can this tell me when I will recover?

No. Recovery percentages describe arithmetic, not a return forecast, time estimate or probability. Increasing risk does not guarantee recovery.

Why can 100% loss not have a finite recovery percentage?

A percentage gain on a zero balance remains zero. The calculator states that limit explicitly. Negative balances and liabilities are outside this model.

Sources and limitations

Prepared by InsomniCapital. Our editorial approach. Checked 2 October 2026.

Educational information only. Actual costs, execution, rates and product specifications can differ. Leveraged trading can result in substantial losses. Read the risk disclosure.