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.