Free trading tools

Drawdown Recovery Calculator

See how much you need to gain back after a drawdown.

Best for

Understanding the real cost of drawdowns.

What you get

Recovery percentage and balance needed to get back to breakeven.

Not for

Hiding bad risk management.

Formula

Recovery gain equals drawdown divided by the remaining account value after the loss.

Example

After a 20% drawdown, you need a 25% gain to get back to breakeven.

Hexaplan verdict

Useful after losing periods and risk reviews.

How drawdown recovery works

A loss and a recovery gain are not the same size. After a drawdown, the account is smaller, so the gain needed to recover is larger.

This is why keeping drawdowns controlled matters more than chasing fast returns.

How to use this calculator

Enter starting balance.
Enter current balance or drawdown percentage.
Review the gain needed to recover.
Compare it with your normal monthly return.
Lower risk if the recovery target is unrealistic.

Common mistakes

Trying to win it back quickly.
Increasing size after a drawdown.
Ignoring how long recovery may take.
Only tracking dollars, not percentages.
Not reducing risk after rule breaks.

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FAQ

Why is recovery gain higher than the loss?

Because you are growing from a smaller balance after the drawdown.

Can this tell me how long recovery takes?

It shows the gain needed. Time depends on your actual performance.

Should I increase risk to recover faster?

Usually no. That often makes the drawdown worse.