Portfolio Drawdown Calculator
Calculate the peak-to-trough decline of your portfolio and determine how much gain is needed to recover from a drawdown.
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Drawdown Analysis
Dollar Loss$30,000
Drawdown30.00%
Recovery Needed42.86%
FAQ
Why is the recovery percentage higher than the drawdown?›
Because recovery is calculated from a smaller base. A 50% loss requires a 100% gain to break even: if $10,000 drops to $5,000, you need to double $5,000 to get back to $10,000. This asymmetry is why risk management and limiting drawdowns are critical.
What is considered a large drawdown?›
A drawdown greater than 20% is typically classified as a bear market. For individual portfolios, drawdowns beyond 10-15% may signal the need to reassess risk tolerance or diversification. Professional fund managers often target maximum drawdowns of 10-20%.