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Drawdown calculator

Losses and gains are not symmetric. Down 50% needs +100% to get back to flat; down 80% needs +400%. This is the arithmetic behind every rule about risk per trade.

Drawdown input
Name the drawdown directly, or let a run of full-risk losses produce it.
Account
The equity high-water mark the fall is measured from.
Loss
The peak-to-trough fall in account equity.
Gain needed to break even
+25.00%on what is left
After a 20.0% drawdown
Loss amount
2,000.00 USD
Remaining balance
8,000.00 USD
Profit required
to return to the starting balance
2,000.00 USD
Asymmetry
How much harder the climb is than the fall
1.25×
Recovery time at 5%/month
Compounded, assuming no further losses
4.6 months
This is where discipline decides the outcome
The gain required now runs well ahead of the loss, and the temptation is to close the gap by raising risk. That is the move that turns a bad quarter into a terminated account — the same size that dug the hole cannot dig you out any faster.
Drawdown and the gain needed to recover it
DrawdownGain to break evenAsymmetryDifficulty
5%5.3%1.05×Routine
10%11.1%1.11×Routine
15%17.6%1.18×Manageable
20%25.0%1.25×Manageable
25%33.3%1.33×Manageable
30%42.9%1.43×Challenging
40%66.7%1.67×Challenging
50%100.0%2.00×Difficult
60%150.0%2.50×Difficult
70%233.3%3.33×Very difficult
80%400.0%5.00×Very difficult
90%900.0%10.00×Extreme
The gain is earned on the reduced balance, which is the entire reason the second column outruns the first.
How it works

Understanding the numbers

Why isn't recovery symmetric?

Because the gain is earned on the reduced balance. Lose 50% of 10,000 and you have 5,000 — getting back to 10,000 from there is a 100% gain. The deeper the hole, the smaller the base you climb out on.

What is the asymmetry ratio?

Recovery needed ÷ drawdown taken. At −20% it is 1.25×; at −50% it is 2×; at −80% it is 5×. It is the multiplier on how much harder the way back is than the way down.

Consecutive losses

Risking a fixed percentage compounds downward: ten losses at 2% leave 81.7% of the balance, not 80%. The consecutive-losses mode shows the drawdown a streak produces at your chosen risk per trade.

How long does recovery take?

The estimate assumes a steady compounded monthly return — 5% by default. Treat it as an order of magnitude: it says a 50% drawdown is a year-plus problem, not a next-week problem.

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