CandleChasers

UNDERSTAND THE COMEBACK

Drawdown Recovery Calculator

See how much an account must gain to recover after a percentage loss. The recovery percentage is larger than the loss percentage.

Your inputs

Use one currency throughout. Results update as you type.

Your result

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How to use this calculator

Adjust the inputs to your own scenario, then review the result alongside the assumptions below. The $ symbol is a currency label; the tool does not convert exchange rates.

Worked example

A 30% loss reduces $10,000 to $7,000. Recovering the missing $3,000 requires a 42.86% gain on the remaining $7,000.

The formula

Remaining balance = starting balance × (1 − drawdown). Recovery gain = drawdown ÷ (1 − drawdown), using decimal percentages.

What the result means

A 50% drawdown requires a 100% gain to recover. This asymmetry is why two strategies with the same total return can feel very different to hold.

Assumptions and limitations

Assumes no deposits or withdrawals, and measures the recovery required from the lower balance to the original peak. It does not estimate the time needed to recover. A 100% loss leaves no capital from which to compound, so that input is excluded.

Common questions

Is drawdown the same as a losing trade?

Drawdown is the decline from an account or equity curve’s previous peak. It can span many trades.

Can contributions speed up recovery?

Deposits can restore the dollar balance, but they are not investment returns. This calculator excludes them.

Put your trading rules to the test

Explore supported daily stock rules, then review historical trades, drawdowns, and the report’s assumptions.

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Educational calculations, not a forecast or personalized investment advice. Your inputs are used locally for the calculation and are not submitted by this tool.

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