Drawdown Calculator
Enter your portfolio value and drawdown percentage to see exactly how much gain you need to recover — and how bad the loss really is.
Drawdown Calculator
Calculate the exact gain required to recover from any level of portfolio or account drawdown.
| Drawdown | Recovery % | Category |
|---|---|---|
| 5% | 5.3% | Minor |
| 10% | 11.1% | Minor |
| 15% | 17.6% | Moderate |
| 20% | 25.0% | Moderate |
| 25% | 33.3% | Moderate |
| 30% | 42.9% | Severe |
| 35% | 53.8% | Severe |
| 40% | 66.7% | Severe |
| 45% | 81.8% | Severe |
| 50% | 100.0% | Critical |
| 55% | 122.2% | Critical |
| 60% | 150.0% | Critical |
| 70% | 233.3% | Critical |
| 75% | 300.0% | Critical |
| 80% | 400.0% | Critical |
| 90% | 900.0% | Critical |
About Drawdown Calculator
A drawdown is the percentage decline in the value of a portfolio or trading account from its peak to a subsequent trough. It is the most important measure of risk for active traders and investors — more revealing than annualised returns because it reflects what you will actually experience during adverse periods.
The mathematics of drawdown recovery is brutally asymmetric. A 10% loss needs only an 11.1% gain to recover, but a 50% loss demands a full 100% gain — and a 80% loss requires a 400% gain just to break even. This is why professional risk managers spend far more energy on capital preservation than on maximising upside.
The Drawdown Calculator quantifies this asymmetry precisely. Enter your portfolio size and the drawdown percentage — the tool instantly shows you the recovery gain required on the remaining capital, the rupee amount lost, and where your drawdown falls on the severity scale (Minor / Moderate / Severe / Critical).
Use this tool before sizing any position. Understanding that a concentrated bet gone wrong can put you in a mathematical hole you cannot trade your way out of is the most important lesson in risk management. The best traders do not have higher win rates — they have smaller, more controlled drawdowns.
How to Use the Drawdown Calculator
Enter your current portfolio or trading account value in rupees using the presets (₹1L, ₹5L, ₹10L) or type a custom value.
Drag the drawdown slider or click a quick-select button (10%, 20%, 30%, etc.) to set the drawdown percentage you want to analyse.
Read the Recovery Gain Needed in the result card — this is the percentage return required on the post-drawdown balance to return to your original peak.
Check the severity label (Minor, Moderate, Severe, Critical) and the rupee amounts for the amount lost and gain required.
Scroll down the reference table to see recovery requirements at all standard drawdown levels in a single view.
Pro Tips
Never let a drawdown exceed 25–30% if you plan to trade your way back. Beyond that, recovery requires extraordinary returns that compound the pressure to take poor-quality trades.
Decide your maximum acceptable drawdown before you start trading — not during a drawdown. Many professionals use a 15–20% account drawdown as a mandatory strategy review trigger.
Risking 1–2% per trade caps your drawdown even through long losing streaks. A 10-trade losing streak at 1% risk leaves you with 90.4% of capital — bad, but recoverable.
Frequently Asked Questions
What is a drawdown in trading?
A drawdown is the percentage decline from a portfolio's peak value to its lowest subsequent point before recovering to a new high. It measures the worst-case loss an investor experienced over a period and is a standard measure of downside risk in both trading and fund management.
Why does recovery require more than the drawdown percentage?
Because you are recovering on a smaller base. If you lose 50%, you have half your original capital. To get back to the original, that smaller amount must double (100% gain). The formula is: recovery% = drawdown / (100 – drawdown) × 100.
What is considered a bad drawdown for a trading account?
For active traders, most professionals consider a 20–30% drawdown as a warning level and a 40%+ drawdown as critical — requiring a complete strategy review. For long-term equity investors, a 50–60% drawdown (like 2008) is severe but historically recoverable over 3–5 years.
How can I limit my drawdown as a trader?
The two most effective tools are position sizing (never risk more than 1–2% of capital per trade) and stop-losses (pre-defined exit levels). Both must be set before entering a position — discipline breaks down during a loss.
Is SEBI or NSE drawdown data available for mutual funds?
Yes — SEBI-registered mutual funds disclose maximum drawdown in their fund factsheets and on AMFI's website. Most direct equity funds show maximum drawdowns between 20–55% during market corrections. Comparing maximum drawdown alongside CAGR gives a more complete picture of fund quality.
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