Drawdown Calculator — Max Drawdown, Recovery % & Consecutive Losses
Drawdown measures the decline from an account’s peak balance. The critical insight is asymmetry: losses are calculated on a larger number than gains are earned back on. A 30% drawdown leaves you with 70% of your capital, so you need 30/70 = 42.9% on the remaining balance just to get back to flat — not 30%. A 50% drawdown requires a 100% gain to recover. This calculator shows the exact recovery percentage for any drawdown size and models how many consecutive losing trades at a fixed risk percentage trigger that decline. Use it to set maximum drawdown rules before you start trading, not after.
Updated · Reviewed by Foysal Mostafa
Drawdown Analysis
Balance After DD
$7,000
Amount Lost
-$3,000
Recovery Needed
42.9%
Consecutive Losses
18
A 100% loss has no finite percentage recovery. Consecutive-loss estimates assume a fixed fraction of remaining equity; an em dash means no finite result.
Why Use the Drawdown Calculator?
Drawdown measures the decline from an account’s prior peak. The gain needed to recover is larger than the percentage loss because recovery starts from a smaller balance. Compare the displayed result with the worked example and confirm the assumptions before using it.
Formula Used
Recovery % = drawdown % / (100 − drawdown %) × 100Worked Example
A fall from $10,000 to $7,000 is a 30% drawdown. Recovering $3,000 on the remaining $7,000 requires 42.8571%. At 2% of remaining equity lost per trade, 18 consecutive losses first exceed a 30% decline; 17 do not.
How to Use the Drawdown Calculator — Step by Step
- 1
Enter the stated inputs
Use the units shown next to each field. Replace sample rates and rules with values applicable to your instrument and account.
- 2
Check a worked example
A fall from $10,000 to $7,000 is a 30% drawdown. Recovering $3,000 on the remaining $7,000 requires 42.8571%. At 2% of remaining equity lost per trade, 18 consecutive losses first exceed a 30% decline; 17 do not.
- 3
Interpret the result
A total loss has no finite percentage recovery without new capital. Deposits and withdrawals distort drawdown if treated as trading results. The calculator explores a chosen decline and a repeated-loss scenario; it does not calculate the probability of that sequence or how long a strategy will take to recover.
What Your Drawdown Calculator Results Mean
Calculation basis
Recovery % = drawdown % / (100 − drawdown %) × 100
Interpretation and limits
A total loss has no finite percentage recovery without new capital. Deposits and withdrawals distort drawdown if treated as trading results. The calculator explores a chosen decline and a repeated-loss scenario; it does not calculate the probability of that sequence or how long a strategy will take to recover.
Drawdown Calculator — Frequently Asked Questions
Q.How is this calculated?
Recovery % = drawdown % / (100 − drawdown %) × 100
Q.What example can I use to check the arithmetic?
A fall from $10,000 to $7,000 is a 30% drawdown. Recovering $3,000 on the remaining $7,000 requires 42.8571%. At 2% of remaining equity lost per trade, 18 consecutive losses first exceed a 30% decline; 17 do not.
Q.What assumptions or limitations matter?
A total loss has no finite percentage recovery without new capital. Deposits and withdrawals distort drawdown if treated as trading results. The calculator explores a chosen decline and a repeated-loss scenario; it does not calculate the probability of that sequence or how long a strategy will take to recover.
About the Author
Forex Trader & Software Developer · Founder, TradeCalc
Active forex trader since 2019, specializing in risk management and systematic position sizing. Built TradeCalc to replace manual spreadsheets used in live trading. Calculator formulas are checked with worked examples and automated regression tests. Broker-specific rules and execution outcomes still need independent confirmation.
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