Drawdown Recovery Calculator: Gain Needed | AlgoBars

Free drawdown recovery calculator

The short answer

After a drawdown you need a bigger percentage gain to get back to even: gain needed = drawdown ÷ (1 − drawdown). A 10% loss needs about an 11% gain, a 25% loss needs 33%, and a 50% loss needs 100%. That is why controlling drawdown matters more than chasing returns.

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Recovery table

DrawdownGain needed to recover
10%11.1%
20%25%
30%42.9%
40%66.7%
50%100%
75%300%

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Frequently asked questions

How much do I need to gain after a 50% loss?

100%.

What is the formula?

Gain needed = drawdown ÷ (1 − drawdown).

More answers

Calculators are for education. Check figures with your broker, whose contract sizes and conversion rates may differ. Trading involves risk of loss.

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