Drawdown and recovery calculator
Measure the fall from a peak and the return that the remaining capital would need to recover that level.
Use a decimal point. Initial values are an example, not a live quote.
Formula and example
Drawdown = (peak − current value) ÷ peak × 100. Recovery = (peak − current value) ÷ current value × 100.
Falling from 10,000 to 8,000 loses 2,000, a 20% drawdown. Recovering 2,000 from 8,000 requires 25%, not 20%.
How to interpret the result
- Compare balance with balance or equity with equity. Balance excludes open-position P/L; equity includes it.
- Adjust deposits and withdrawals first. A withdrawal is not a trading loss and a deposit is not a trading profit.
- This tool measures the decline between two values. Maximum historical drawdown requires the entire chronological curve.
- Required recovery is arithmetic, not a forecast or a reason to increase risk.