| Loss, % | Gain needed to recover |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 30% | 42.9% |
| 50% | 100% |
| 70% | 233.3% |
| 90% | 900% |
The calculator starts with neutral sample values. Change the drawdown percentage, or enter a peak balance and a current balance, and the required gain appears next to the inputs. Below the result, the tool shows a table of common drawdowns with the gain each one needs.
What drawdown means
A drawdown is the fall in an account balance or equity from its highest point (the peak) to a later low point. It is usually written as a percentage of the peak. This is the drawdown percentage.
- Peak balance: the highest value the account reached before the fall.
- Current balance: the value after the loss.
- Drawdown percentage: (peak balance − current balance) ÷ peak balance.
Traders also separate balance drawdown (closed trades only) from equity drawdown (which includes floating profit or loss on open positions). Equity drawdown can be deeper, because open losses count before the positions are closed.
Why recovery needs a larger gain than the loss
After a loss, the smaller balance has to grow back to the old peak. The gain is a percentage of the smaller amount, so the required gain is always larger than the drawdown that caused it.
As the drawdown gets deeper, the required gain does not grow evenly. It rises faster and faster. Small drawdowns need a gain only slightly larger than the loss. Deep drawdowns need a gain several times larger than the loss. The table under the tool shows this for a range of common drawdown levels.
Formula
The calculator uses this relationship:
Gain needed = amount lost ÷ amount remaining
Written with balances:
Gain needed = (peak balance − current balance) ÷ current balance
Written with the drawdown as a fraction d of the peak, it is the familiar form g = 1/(1 − d) − 1. The calculator shows the result as a percentage.
How to use the calculator
- Choose whether to enter a drawdown percentage or two balances.
- For balances, enter the peak value and the value now, in the same currency.
- Read the required gain shown beside the inputs.
- Check the table to compare your figure with other drawdown levels.
The tool only does arithmetic. It does not know your strategy, costs, swaps or the market, and it does not estimate how long a recovery could take or whether it is possible.
Reading the result as an experienced trader
- Position size after a loss. If you risk a fixed percentage of the current balance per trade, each trade after a drawdown risks a smaller amount. Recovery then takes more winning trades than a fixed-amount approach would. The lot size calculator shows how size changes with the balance.
- Costs count against recovery. Spreads, commissions and swaps reduce net gains. The trade cost calculator and the swap calculator help put a figure on them.
- Win rate and reward-to-risk. The required gain alone says nothing about the trades needed to reach it. The break-even win rate calculator and the risk-reward calculator connect those inputs.
- Sequences of losses. A run of losing trades compounds the drawdown. The trade series simulator shows how different risk settings behave over many trades.
- Leverage and stop-out. With leveraged positions, a drawdown in equity can trigger a margin call or stop-out before you decide to close. The margin call simulator shows where those levels fall.
Risk note
Leveraged forex and CFD trading can lose money fast, and a deep drawdown can make the account very hard to restore. Trying to win back a loss quickly by increasing size usually raises the risk of a deeper loss. This page does not suggest any action. Our risk management and trading psychology guides explain how traders think about loss limits.
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Frequent questions
What does a drawdown recovery calculator show?
It shows the percentage gain an account needs to return from its current balance to its previous peak after a loss.
How do I calculate drawdown percentage?
Subtract the current balance from the peak balance, then divide by the peak balance. The calculator does this when you enter both balances.
Why is the gain needed bigger than the loss?
The gain is measured on the smaller, post-loss balance. A smaller base needs a larger percentage to add back the same amount.
Does the calculator include fees or swaps?
No. It uses balances only. Add trading costs separately with the trade cost calculator.
Can I use it for equity drawdown?
Yes. Enter the peak equity and the current equity instead of balances. The formula is the same.
Does it tell me how long a recovery takes?
No. Time depends on your trades and the market, which no formula can know. For more tools, see the calculators page.