Drawdown Recovery Calculator

Use this drawdown recovery calculator to see how much gain is required to recover from an account loss. Enter the balance before drawdown and the current balance to calculate drawdown percentage and recovery percentage.

Best for

Understanding how much recovery is needed after a losing period and whether the plan is realistic.

What you get

Current drawdown, recovery gain required, recovery shape, and a practical risk verdict.

Not for

Justifying revenge trading, doubling risk, or forcing a fast comeback after losses.

Formula

Recovery required = drawdown / (1 - drawdown)

Example

A 25% drawdown needs a 33.3% gain to return to break-even.

Hexaplan verdict

The deeper the drawdown, the more nonlinear the recovery becomes.

Drawdown recovery formula

Drawdown = loss amount / account balance before the loss.

Recovery required = drawdown / (1 - drawdown). This is why a 50% drawdown needs a 100% gain to recover.

Drawdown recovery example

If an account drops from $10,000 to $7,500, the drawdown is 25%. To return from $7,500 back to $10,000, the account needs a 33.3% gain.

Why drawdowns are nonlinear

The deeper the drawdown, the smaller the remaining account base becomes. That means the percentage gain required to recover rises faster than the original loss percentage.

How to use this calculator

Enter the account balance before the drawdown.
Enter the current account balance.
Review the drawdown percentage.
Review the gain required to recover.
Decide whether to reduce risk, pause, or rebuild with smaller size.

Common drawdown mistakes

Increasing risk after losses.
Setting recovery targets that require unrealistic returns.
Ignoring the emotional impact of drawdown.
Changing strategy after a small sample of trades.
Failing to reduce correlated exposure.

Related trading calculators

FAQ

How do I calculate drawdown?

Subtract your current balance from the previous peak, then divide the loss by the previous peak balance.

Why does a 50% drawdown need 100% recovery?

After a 50% loss, the account base is half as large. It must double from the reduced balance to return to the original amount.

What is a normal trading drawdown?

Normal drawdown depends on strategy, risk per trade, market regime, and sample size. A drawdown is only acceptable if your plan can survive it statistically and emotionally.

Should I increase risk to recover faster?

Usually no. Increasing risk during drawdown can make losses worse unless the approach is tested and tightly controlled.

Does this calculator predict recovery time?

No. It shows the percentage gain required, not how long recovery will take.