Risk Tool

Drawdown Recovery Calculator

Losses and gains aren't symmetric. Set how far you've fallen below your peak and see the exact percentage gain you need to climb back to break-even.

20%

How far below your peak you are.

Gain Needed to Recover 25.0%

A 20% loss needs a 25.0% gain to get back to break-even.

Capital Remaining80% of peak
Recovery Multiplier1.25×

For educational purposes only. Read our risk warning before trading.

The Math

Why Recovery Outpaces the Loss

A drawdown shrinks the capital you have left to grow from. A 20% loss leaves you with 80% of your peak, so you must grow that smaller base back to 100% — and the gain needed is always larger than the loss that caused it. The deeper the hole, the steeper the climb.

Quick Reference

Loss vs. Gain Needed to Recover

Drawdown (loss)Gain needed to recover
5%5.3%
10%11.1%
20%25%
25%33.3%
30%42.9%
40%66.7%
50%100%
75%300%
90%900%

Frequently Asked Questions

Why isn't recovery symmetric?

Because the gain is measured against a smaller base. A 50% loss halves your capital, so you must double what's left — a 100% gain — just to return to where you started. The percentages only match for tiny moves; they diverge fast as the loss grows.

Why does a big loss hurt so much?

The required recovery accelerates non-linearly. A 25% loss needs a 33% gain, but a 75% loss needs a 300% gain — quadrupling your remaining capital. This is exactly why capital preservation and tight drawdown control matter more than chasing oversized wins.

How do I limit drawdown?

Risk a small, fixed fraction of your account per trade, use a stop-loss on every position, and avoid recovery tactics like martingale or all-in compounding — doubling down after a loss can deepen a drawdown into one that's mathematically very hard to climb out of. Smaller, capped losses keep the required recovery within reach.

Is this the same as ROI?

Not quite. ROI is your total return over a period. This tool isolates one piece of it: the return needed purely to undo a drawdown and get back to break-even. Any gain beyond that figure is the point where you start making real, new profit.