Step 1
Enter the portfolio loss
Type any drawdown from 0.01% to 99.99%, or use one of the preset loss percentages.
TradingSimuLab / Tools / Drawdown Recovery Calculator
Free evergreen calculator
Drawdown Recovery Calculator
See how much return is required to recover from a portfolio loss. The deeper the drawdown, the larger the percentage gain needed to return to the starting value.
Recovery gain required
loss(1 − loss)
Example: a 25% decline needs a 33.33% gain to recover.
Educational note: This calculator explains drawdown mathematics. It does not predict future returns and is not financial advice.
Calculator
Enter the decline
Adjust the drawdown and starting portfolio value. Results update immediately.
Recovery result
What it takes to get back to even
Gain required after the loss
33.33%
After a 25% decline, the remaining portfolio must gain 33.33% to recover.
Value after decline
$7,500
Dollar gain needed
$2,500
Remaining capital
75.00%
Recovery multiple
1.33×
How to use this drawdown recovery calculator
Enter the percentage decline in your portfolio or investment. Add a starting value to see both the percentage recovery and the dollar amount needed to return to the original value.
Step 2
Review the recovery gain
The result shows the return required on the smaller amount of capital that remains after the decline.
Step 3
Compare the dollar values
Use the starting-value field to see the post-loss balance and the dollar gain required to get back to even.
This tool can also be used as an investment loss recovery calculator, portfolio recovery calculator, or break-even return calculator. Each term asks the same question: what percentage gain is needed on the capital that remains?
Why recovery gains are larger than losses
A percentage loss is measured from the original value. The recovery gain is measured from the smaller value that remains. That smaller base is why a 50% decline requires a 100% gain—not another 50%—to return to the starting point.
Start$10,000
25% decline$7,500
33.33% recovery$10,000
Common drawdown recovery table
| Portfolio decline | Capital remaining | Gain needed to recover |
|---|---|---|
| 10% | 90% | 11.11% |
| 20% | 80% | 25.00% |
| 30% | 70% | 42.86% |
| 40% | 60% | 66.67% |
| 50% | 50% | 100.00% |
| 60% | 40% | 150.00% |
| 70% | 30% | 233.33% |
| 80% | 20% | 400.00% |
| 90% | 10% | 900.00% |
What the recovery percentage does—and does not—show
The result is the mathematical return needed to restore the original portfolio value after a loss. It assumes no additional deposits or withdrawals and does not include taxes, fees, inflation, or the time required to recover.
Adding new money can reduce the dollar gap to the original balance, but it does not change the percentage return needed for the remaining invested capital itself to recover from the drawdown.
Drawdown recovery questions
How do you calculate the gain needed to recover from a loss?
Convert the drawdown to a decimal and divide it by one minus the drawdown. For a 25% loss: 0.25 ÷ 0.75 = 0.3333, or 33.33%.
Why does a 50% loss require a 100% gain?
A 50% decline cuts the portfolio in half. Doubling the remaining half requires a 100% gain.
Does this calculator predict how long recovery will take?
No. It calculates the mathematical return required to recover. The time needed depends on future returns, volatility, cash flows, and portfolio decisions.
How much gain is needed after a 20% loss?
A 20% loss leaves 80% of the original capital. The remaining capital must gain 25% to return to the starting value.
Do deposits or withdrawals change the recovery calculation?
Cash flows change the dollar balance, but the standard recovery percentage describes the return needed on the capital that remains after the loss.
Go beyond a single drawdown percentage
Use the free TSL Risk Simulation tool to explore downside ranges, probability of gain, VaR, CVaR, and simulated drawdown outcomes.