Drawdown Recovery Calculator
See the mathematical gain needed after a decline, with an optional starting-balance illustration.
Compare two values of the same account or asset on the same basis. Deposits, withdrawals, fees, taxes and inflation are outside this illustration.
Gain required on the remaining value
- Original decline
- 20.00%
- Starting balance
- 10,000.00 USD
- Remaining balance
- 8,000.00 USD
- Cash loss
- 2,000.00 USD
- Cash gain needed to return
- 2,000.00 USD
This is a percentage identity, not a forecast, trading target or assurance that a loss can be recovered. A 100% loss leaves no remaining base on which to earn a percentage return.
Different bases. Different percentages.
Loss is measured against the starting value; the recovery gain is measured against the smaller remaining value. Examples exclude cash flows and costs. Amounts and percentages are rounded for display, not broker settlement.
| Decline | Value remaining | Gain required to return |
|---|---|---|
| 10.00% | 90.00% | 11.11% |
| 20.00% | 80.00% | 25.00% |
| 30.00% | 70.00% | 42.86% |
| 50.00% | 50.00% | 100.00% |
| 75.00% | 25.00% | 300.00% |
| 90.00% | 10.00% | 900.00% |
For a 20% decline, 80% of the starting value remains. Restoring the missing 20 from that base requires 20 ÷ 80 = 25%, rather than 20%. This tool does not calculate a historical maximum drawdown from a sequence of trades or estimate how long recovery might take.
How it works
Required gain (%) = decline (%) ÷ (100 − decline (%)) × 100. The gain uses the remaining value as its base.
A worked example
Starting at $10,000, a 20% decline leaves $8,000. Returning to $10,000 requires $2,000 ÷ $8,000 = 25%. A 50% decline requires a 100% gain on what remains.