Drawdown recovery calculator
A loss and the gain that undoes it are not the same size, because the gain starts from a smaller amount. Enter the drawdown as a percent, or the peak and current values, to see the gain you need and how long it takes at a steady yearly return.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Choose whether to enter the loss as a percent or as peak and current values.
- Enter the drawdown, or the peak and the current value.
- Optionally enter an annual return to estimate the time to recover.
How it works
- Drawdown d = 1 − current ÷ peak.
- Gain needed = d ÷ (1 − d) = peak ÷ current − 1.
- Years to recover at an annual return r = ln(1 ÷ (1 − d)) ÷ ln(1 + r).
Recovery table
| Loss |
Gain needed |
| 10% |
11.11% |
| 20% |
25% |
| 25% |
33.33% |
| 30% |
42.86% |
| 40% |
66.67% |
| 50% |
100% |
| 60% |
150% |
| 75% |
300% |
| 90% |
900% |
Worked example
A portfolio fell from 12,000 to 9,000. The drawdown is 3,000 ÷ 12,000 = 25%, but the gain needed is 3,000 ÷ 9,000 = 33.33%. At 8% a year that takes ln(4/3) ÷ ln(1.08) ≈ 3.74 years.
Tips
- The table grows steeply: limiting large losses matters more than chasing large gains.
- Years at a steady return are a rough guide. Markets do not move in a straight line.
Frequently asked questions
Why does a 50% loss need a 100% gain?
After losing half, 100 becomes 50. To get back to 100, the 50 has to double, which is a 100% gain. The formula is gain = d ÷ (1 − d) for a drawdown d.
How is the recovery time worked out?
At a steady annual return r, money grows by (1 + r) each year. The years needed are ln(1 ÷ (1 − d)) ÷ ln(1 + r). Real returns are uneven, so this is an estimate.
What is a drawdown?
The fall from a peak value to a later low, as a percent of the peak. A portfolio that went from 12,000 to 9,000 is in a 25% drawdown.
Does it include new deposits?
No. It shows the growth the existing money needs. Adding money gets the balance back to the peak sooner but does not change the return the original money needs.