VCM / FREE TRADING TOOLS

Drawdown Recovery Calculator

Calculate the percentage decline from an account peak and the gain required to return to that peak. Inputs stay on this page.

Drawdown & recovery

Compare an earlier peak with a lower current value, using the same currency and measurement basis.

Decline: 2,000 units (20%)

Gain needed to recover: 25%

Drawdown = (peak − current) ÷ peak. Recovery = (peak − current) ÷ current. No additional deposits, withdrawals or costs are assumed; this does not predict a recovery.

Worked example

An account falling from 10,000 to 8,000 is down 20%. Returning to 10,000 requires a 25% gain from 8,000.

The percentages differ because they use different starting values. For example, a 50% drawdown requires a 100% gain from the lower value. Compare figures on the same basis and account for any deposits or withdrawals separately before interpreting trading performance.