Drawdown Recovery Calculator
Losses are harder to recover than they look. Slide the size of a loss and see the gain you need just to get back to where you started.
Drawdown Recovery
How far the account has fallen from its highest balance.
Gain needed to get back to break-even
+25%
After losing 20%, you need a 25% gain just to return to where you started. That is 1.25× the size of the loss, because you are now climbing from a smaller balance.
| Loss | Gain needed |
|---|---|
| 5% | 5.3% |
| 10% | 11.1% |
| 20% | 25% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100% |
| 60% | 150% |
| 70% | 233.3% |
| 80% | 400% |
| 90% | 900% |
How was this calculated?
- Balance left = 1 − 0.2 = 0.8 of the peak
- Gain needed = 1 ÷ (1 − 0.2) − 1 = 1.25 − 1 = 0.25 (25%)
What does this mean?
After a loss you are trading with a smaller balance, so getting back to the old level takes a bigger percentage gain than the percentage you lost. Lose 10% and you need 11.1%. Lose 50% and you need 100%.
The relationship is not a straight line: it climbs steeply as the loss grows. That is the mathematical case for protecting your capital first and chasing profit second.
The formula
Gain needed = 1 ÷ (1 − Loss) − 1
Loss of 20%: 1 ÷ 0.80 − 1 = 25%
Loss of 50%: 1 ÷ 0.50 − 1 = 100%
Worked example
A $10,000 account falls 20% to $8,000. To get back to $10,000 you must make $2,000 on an $8,000 balance, which is 25%, not 20%. If it had fallen 50% to $5,000, you would need to double it (a 100% gain) just to break even.
Why this matters for risk per trade
Risking 1% per trade, ten losses in a row leave you about 9.6% down and needing about a 10.6% gain to recover. Risking 10% per trade, the same ten losses leave you about 65% down and needing roughly a 187% gain. Small risk keeps recovery realistic.
Frequently asked questions
How is the gain needed to recover from a loss calculated?
Divide 1 by the fraction of your balance you have left, then subtract 1. If you have 80% left, 1 ÷ 0.8 − 1 = 25%.
Why is recovery bigger than the loss?
Because the percentage gain is applied to a smaller balance. A 50% loss leaves half your money, so you need to double what is left.
Is a 100% loss recoverable?
No. If the balance reaches zero there is nothing left to grow, which is why the calculator stops at 90%.
Learn more
This tool is for education and general information only and is not financial advice. Results are estimates that exclude spreads, commissions, swaps and slippage. Trading carries a risk of loss. Preferences you choose, such as your account currency, are remembered only in your own browser.