Drawdown Recovery Calculator
Discover how much you need to gain to recover from any drawdown.
Amount Lost
$2,000
Remaining Balance
$8,000
Recovery Needed
25.00%
Quick Reference
| Drawdown | Recovery Needed | Difficulty |
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Why Drawdown Recovery Is Non-Linear
A common misconception is that a 50% loss requires a 50% gain to recover. In reality, after losing 50% you need a 100% gain to get back to breakeven — because you're now gaining on a smaller base.
Recovery % = (Drawdown % / (100 − Drawdown %)) × 100
This is why capital preservation is the #1 rule of professional trading. Small drawdowns are manageable, but deep drawdowns become exponentially harder to recover from.