Drawdown Calculator
Calculate an investment's peak-to-trough decline. Enter peak (or purchase) price and current price to calculate drawdown percentage and the return required to get back to even.
Loss vs. Gain To Break Even
| Loss / Drawdown | $10,000 Becomes | Gain to Break Even | Multiplier |
|---|---|---|---|
| -10% | $9,000 | +11.1% | 1.11x |
| -20% | $8,000 | +25% | 1.25x |
| -30% | $7,000 | +42.9% | 1.43x |
| -40% | $6,000 | +66.7% | 1.67x |
| -50% | $5,000 | +100% | 2.00x |
| -60% | $4,000 | +150% | 2.50x |
| -75% | $2,500 | +300% | 4.00x |
| -90% | $1,000 | +900% | 10.00x |
Drawdown & Recovery Formulas
A drawdown measures the percentage decline of an asset from its peak valuation. Because losses reduce the starting capital base, the gain required to break even is always mathematically greater than the percentage lost:
Yields a negative percentage indicating how far valuation has declined from its highest historical level.
Yields the percentage return required on remaining capital to climb back to the prior high water mark.
Frequently Asked Questions
Why does a 50% loss require a 100% gain to break even?▼
Because losses reduce your starting capital base. If a $10,000 investment falls 50%, you are left with $5,000. To return to $10,000, your remaining $5,000 must gain another $5,000 — which is a 100% return.
Why is a +300% gain equal to a 4.00x multiplier?▼
Percentage gain measures added profit, while the multiplier measures total ending value relative to your starting capital. For example, if a 75% loss leaves you with $2,500, a +300% gain adds $7,500 in profit. Your ending balance is $10,000 ($2,500 starting base + $7,500 gain), which is exactly 4.00x your bottom balance ($10,000 / $2,500 = 4.00x). In short: Multiplier = 1 + (Gain % / 100).
What is the drawdown formula?▼
Drawdown (%) = ((Current Price - Peak Price) / Peak Price) × 100. Required Recovery Return (%) = ((Peak Price - Current Price) / Current Price) × 100.
How does Dollar-Cost Averaging (DCA) help recover from a drawdown?▼
Buying additional shares at lower prices lowers your average purchase price. This means you do not need the asset to reach its former peak to break even or turn a profit.
Is this calculator for pension or retirement drawdown?▼
No. In UK and retirement planning, "pension drawdown" refers to withdrawing regular income from a pension fund. This calculator is an investment risk tool that measures the peak-to-trough percentage decline of stocks, cryptocurrencies, commodities, or assets, and computes the mathematical gain needed to break even.