Drawdown Recovery Calculator
Find out how much gain your account needs to recover from a loss. The deeper the drawdown, the harder the climb back.
Recovery Needed
25.0%
A 20% drawdown requires a 25.0% gain to recover.
Common Drawdown & Recovery Reference
| Drawdown | Recovery Needed |
|---|---|
| 10% | 11.1% |
| 20% | 25.0% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100.0% |
| 60% | 150.0% |
| 75% | 300.0% |
| 90% | 900.0% |
Why Drawdowns Are Dangerous
The Math Is Not Symmetric
Losses and gains are not symmetrical in trading. If you lose 50% of your account, you don't need a 50% gain to get back to breakeven — you need a 100% gain. That's because after the loss, you're working with a smaller capital base. The formula is simple: Recovery % = (Loss % / (100 - Loss %)) × 100.
Small Drawdowns Are Manageable
A 10% drawdown only requires an 11.1% gain to recover — well within reach for most strategies. This is why professional traders focus obsessively on keeping drawdowns small. The 1-2% risk-per-trade rule exists specifically to prevent drawdowns from spiraling beyond recovery.
Large Drawdowns Can End Careers
A 50% drawdown requires you to double your remaining capital. A 75% drawdown requires a 300% gain. At 90%, you need a 900% return just to get back to where you started. These recoveries can take months or years — if they happen at all. This is why risk management isn't optional; it's the single most important skill in trading.
Prevention Over Recovery
The best approach to drawdowns is to prevent them from getting large in the first place. Use proper position sizing, set stop losses, and never risk more than you can afford to lose on a single trade. Consider using the Position Size Calculator to ensure your risk is properly managed on every trade.