Drawdown Recovery Calculator

See exactly how much profit you need to recover from any drawdown. Understand why protecting capital is harder than growing it.

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Features

Frequently Asked Questions

What is a trading drawdown?

A drawdown is the percentage drop from a trading account's peak value to its lowest point before a new high is reached. A 20% drawdown means your account fell 20% from its highest balance.

Why is recovery harder than the original loss?

Because you are now working from a smaller base. A 50% loss requires a 100% gain to recover — not 50%. This asymmetry is why risk management is critical in trading.

How do I reduce drawdown?

The most effective ways are: risking a fixed small percentage per trade (1-2%), using stop-losses on every trade, and avoiding overtrading during volatile markets.

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