Risk Management
Drawdown Calculator
Find out exactly how much gain you need to recover from any drawdown. A 50% loss requires a 100% gain to recover.
25.0%
Gain Required to Recover
$8,000
Balance After DD
$2,000
Amount Lost
$2,000
Profit Needed
Why Drawdown Recovery Is Asymmetric
Losses and gains are not symmetrical. When you lose money, your remaining capital is smaller, so you need a proportionally larger gain to get back to breakeven.
- 10% loss → needs 11.1% gain to recover
- 20% loss → needs 25% gain to recover
- 50% loss → needs 100% gain to recover
- 80% loss → needs 400% gain to recover
This is why limiting drawdown is critical. It's much harder to earn back losses than it is to preserve capital.