Free Drawdown & Recovery Calculator

See how far an account has declined from its previous peak and how much growth is required to recover. The Trading Turtle Drawdown
Calculator shows the amount lost, remaining equity, drawdown percentage and the gain needed to return to the earlier balance.

FREE RISK–REWARD TRADE PLANNER

Calculate Drawdown and Recovery

Measure Drawdown and Recovery

Compare a previous equity peak with the current balance and see the gain required to recover.

Amount lost —
Remaining equity —
Drawdown —
Gain needed to recover —

Mathematical estimate only. Changing display currency does not convert values. Recovery percentages are not forecasts of future performance.

How to Use the Drawdown Calculator

  1. Select the display currency that matches your account records.
  2. Choose Equity Values to enter the previous peak and current equity, or choose Drawdown % if you already know the percentage decline.
  3. Enter the starting or peak account equity.
  4. Add the current balance or known drawdown percentage.
  5. Review the amount lost, remaining equity, drawdown and recovery gain required.
  6. Use the result as a mathematical account-risk reference, not as a forecast.

Changing the display currency changes the symbol only. It does not convert the values or retrieve exchange rates.

How Drawdown and Recovery Are Calculated

Drawdown measures the decline from a previous account peak to the current equity:

Drawdown % = (Peak equity − Current equity) ÷ Peak equity × 100

If an account falls from ₹100,000 to ₹80,000, the amount lost is ₹20,000 and the drawdown is 20%.
Recovery is calculated from the lower remaining balance—not from the original peak. That is why the percentage required to recover is larger than the drawdown:

Recovery gain % = Drawdown % ÷ (100% − Drawdown %) × 100

After a 20% drawdown, the remaining ₹80,000 must gain 25% to return to ₹100,000. After a 50% drawdown, the remaining balance must gain 100% to recover. A complete 100% loss leaves no remaining capital, so percentage recovery from zero is not mathematically defined.

Important: Recovery calculations show the gain required to return to the previous peak. They do not estimate the probability, timeframe or investment return needed to achieve it.

More tools: Position Size Calculator | Trade Planner | Pre-Trade Checklist | Trading Journal

WHY USE THIS TOOL?

Understand the Real Impact of Trading Losses

  • Measure the Decline from Peak Equity
  • See the Gain Required to Recover
  • Keep Account Risk in Perspective

Drawdown is easier to control before it becomes severe. Recovery mathematics makes the cost of oversized and repeated losses easier to understand.

Drawdown and recovery calculator showing account loss and percentage gain needed to recover
Drawdown quote

“Protecting capital is not only about limiting one loss—it is about keeping recovery mathematically manageable.”

DRAWDOWN EXPLAINED

Benefits of Using a Drawdown Calculator

Make Account Losses Easier to InterpretA monetary loss alone may not show how seriously an account has declined. Expressing the loss as a percentage of peak equity makes different account periods and balances easier to compare.
Understand Asymmetric RecoveryLosses and recovery gains are not symmetrical. A 10% drawdown needs an 11.11% gain to recover, while a 40% drawdown needs a 66.67% gain. Seeing this relationship can reinforce the importance of controlling downside.
Support More Consistent ReviewsTracking drawdown alongside position size, planned risk and trading-journal results provides a broader view of account performance than win rate or individual profit-and-loss figures alone.

– Frequently Asked Questions (FAQs)

What is drawdown in trading?

Drawdown is the decline from a previous peak in account equity to a later lower value. It can be expressed as a monetary amount or as a percentage of the peak.

How is trading drawdown calculated?

Subtract current equity from peak equity, divide the loss by peak equity and multiply by 100. For example, a decline from ₹100,000 to ₹80,000 is a ₹20,000 loss and a 20% drawdown.

What is a drawdown recovery percentage?

It is the percentage gain required on the remaining balance to return to the previous equity peak. Because the recovery starts from a smaller balance, the required percentage is higher than the drawdown percentage.

Why does a 20% drawdown require a 25% recovery?

After a 20% decline, only 80% of the original capital remains. That smaller balance must increase by one quarter—25%—to replace the amount lost and return to the earlier peak.

How much gain is needed to recover from a 50% drawdown?

A 100% gain is required. If an account falls from ₹100,000 to ₹50,000, the remaining ₹50,000 must double to return to ₹100,000.

Can an account recover from a 100% drawdown?

No. A 100% drawdown leaves zero remaining capital. A percentage gain applied to zero cannot restore the account, so recovery is not mathematically defined.

What is maximum drawdown?

Maximum drawdown is the largest percentage decline from an equity peak to a subsequent low during a measured period. It is commonly used to understand the severity of historical losses, but it does not predict future drawdowns.

Can I use this calculator for stocks, cryptocurrency and futures?

Yes. The mathematics applies to an account or portfolio regardless of market. Leveraged trading can create losses more quickly and may involve liquidation, margin and funding rules that this calculator does not model.

Is this Drawdown Calculator financial advice?

No. It is an educational calculation tool and does not provide personalized financial advice, performance forecasts or trading recommendations.