Drawdown Recovery Calculator
Recovering from a drawdown always takes a bigger percentage gain than the loss itself, because the gain is computed on a smaller remaining balance. A 20% drawdown needs a 25% gain to recover; a 50% drawdown needs a 100% gain. Enter your drawdown below, or paste an equity curve to find its worst peak-to-trough drop automatically.
To get back to the prior peak, the remaining equity needs a 25% gain, not a 20% gain, because the gain is calculated on a smaller base.
Continue with your own chart. Upload a screenshot first, then choose Pro or Elite before Lynx runs the analysis.| Drawdown | Gain needed to recover |
|---|---|
| 5% | 5.3% |
| 10% | 11.1% |
| 20% | 25% |
| 30% | 42.9% |
| 40% | 66.7% |
| 50% | 100% |
| 60% | 150% |
| 70% | 233.3% |
| 80% | 400% |
| 90% | 900% |
The numbers are only as good as the levels you typed. Upload a chart screenshot and Lynx AI reads the structure for you, so the levels come off the chart instead of a guess.
See an AI chart readHow to calculate drawdown recovery
The gain needed to recover from a drawdown is not the same number as the drawdown itself. The formula is:
Gain needed = D / (1 - D), where D is the drawdown expressed as a fraction of the prior peak.
This asymmetry exists because a loss reduces the base that the recovery gain is measured against. The larger the drawdown, the smaller that base gets, and the faster the required gain accelerates.
Worked example
Say an account peaks at $10,000 and drops to $8,000, a 20% drawdown:
- Drawdown = ($10,000 - $8,000) / $10,000 = 20%
- Gain needed = 0.20 / (1 - 0.20) = 0.25, or 25%
- Check: $8,000 x 1.25 = $10,000, back to the prior peak
Now compare a deeper drawdown: an account that falls from $10,000 to $5,000 is down 50%, but needs a 100% gain, double the drawdown percentage, just to get back to even.
The asymmetry table
The gap between the drawdown and the gain needed to recover it widens sharply as the drawdown deepens. This is why capping losses early matters more than chasing the last winning trade:
- A 10% drawdown needs about 11.1% to recover
- A 30% drawdown needs about 42.9%
- A 50% drawdown needs 100%
- A 70% drawdown needs about 233.3%
- A 90% drawdown needs 900%, nearly impossible to earn back
See drawdown recovery math for the full derivation and how it interacts with position sizing.
When it misleads you
This calculator answers a pure math question, the gain needed on the remaining equity; it says nothing about how long that gain will take or whether your strategy can actually produce it. A 100% recovery gain at a modest monthly return can take years, and chasing it with oversized positions is how a recoverable drawdown becomes a permanent one. The equity curve mode also assumes the values you enter are accurate and in chronological order; a gap or an out-of-order value will misstate the peak and trough.
How to use this tool
- Choose a mode. Pick percent mode for a quick recovery estimate, or equity curve mode to analyze real account history.
- Enter your drawdown. In percent mode, type the drawdown as a percentage of the prior peak.
- Or paste your equity values. In equity curve mode, list your balance at each point in time, separated by commas or line breaks.
- Read the gain needed. The tool shows the drawdown percentage and the gain required on the remaining equity to get back to breakeven.
- Check the reference table. Compare your situation against the published table from 5% to 90% drawdown.
Frequently asked questions
What is a drawdown recovery calculator?
A drawdown recovery calculator turns a stated drawdown percentage into the gain needed on the remaining equity to get back to the prior peak. It also accepts a list of equity values and finds the largest peak-to-trough drawdown in that curve automatically.
Why does a 50% drawdown need a 100% gain to recover?
Because the gain is calculated on a smaller base. A 50% drawdown leaves half the account, and doubling that half (a 100% gain) only restores the original amount. The formula is D / (1 - D), which grows faster than the drawdown itself.
What gain do I need to recover a 20% loss?
A 25% gain. A 20% drawdown leaves 80% of the account, and 0.80 x 1.25 = 1.00, back to the starting equity. Use the calculator for any percentage between 0 and just under 100%.
How do I find max drawdown from an equity curve?
Switch to equity curve mode and paste your balance at each point in time, in order. The tool tracks the running peak and finds the largest drop from any peak to the trough that follows it, then reports it as both a value and a percentage.
Is this drawdown calculator free?
Yes. It runs entirely in your browser, requires no signup, and nothing you enter is sent anywhere.
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Educational only. Not financial advice. NFA. Bullynx is not a registered investment adviser or broker-dealer. Trading and investing involve significant risk of loss. Read the full risk disclosure.