Portfolio Drawdown Calculator
Measure how far your portfolio has fallen from its peak and the exact gain needed to recover — the asymmetry that makes big drawdowns so costly.
How it works
Drawdown % = (peak − current) ÷ peak × 100 · Recovery gain % = (peak ÷ current − 1) × 100
Drawdown is the percentage decline from a portfolio’s highest value to its current value, and it is the loss investors actually feel. The recovery gain is always larger than the drawdown because you are earning a percentage on a smaller base: a 20% fall needs 25% back, a 50% fall needs 100%. That asymmetry is why capping the depth of losses matters more than chasing the last few points of return.
Worked example
A portfolio that peaked at $100,000 and now sits at $78,000 is in a 22% drawdown, having lost $22,000. To climb back to $100,000 it must rise from $78,000 — a 28.2% gain, not 22%.
Frequently asked questions
Why is the recovery gain bigger than the drawdown?
Because the gain is calculated on the reduced balance. After a 22% drop you are working with 78 cents on the dollar, so it takes a 28.2% rise on that smaller amount to rebuild the original dollar. The deeper the loss, the wider the gap.
What is a maximum drawdown?
Maximum drawdown is the largest peak-to-trough decline over a period — the worst loss you would have endured if you bought at the top. This calculator measures the current drawdown from a peak you enter; run it with your worst-ever low to approximate max drawdown.
Is drawdown the same as volatility?
No. Volatility measures how much returns bounce around; drawdown measures the actual peak-to-trough loss. Two portfolios can share the same volatility yet have very different worst-case drawdowns depending on how their bad days cluster.
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Educational estimate, not investment advice. Trading involves risk of loss.