Risk and position
Drawdown and Account Recovery Calculator
Use this drawdown recovery calculator to see why the gain required after a loss is larger than the loss percentage measured from the original balance.
Loss and recovery are asymmetric: after a drawdown, the smaller capital base requires a larger percentage gain to recover.
How the calculator works
drawdown = (peak − current) ÷ peak × 100%
recovery = drawdown ÷ (100% − drawdown) × 100%
Drawdown compares the reduced balance with the starting or peak value. Recovery measures the gain needed from the lower base to return to that original value.
Fees, funding, spread, slippage, contract specifications and venue rules can change the realised result. Recheck those details before placing an order.
Inputs to check before calculating
Inputs
- Starting or peak account value.
- Current value after the loss.
- Any additional deposits or withdrawals that should be separated from performance.
- Enter values from the instrument and account you are evaluating.
- Run the calculation and check its units and assumptions.
- Compare the estimate with the venue contract, fees and risk rules.
Result: A planning estimate based only on the entered assumptions, not a trade recommendation.
Frequently asked questions
Why is the recovery percentage greater than the drawdown percentage?
The recovery is calculated from a smaller remaining balance, so the same absolute amount represents a larger percentage of that base.
Does the calculator place or recommend a trade?
No. It performs a planning calculation from the values you enter. It does not connect to an account, execute an order or provide personalised advice.
Calculator results are estimates for planning and education. Verify contract specifications, fees and rules with your broker or exchange.
Updated: · Midas Team
