What is this calculator?
The drawdown calculator shows how account losses reduce balance and how much recovery is required to return to breakeven.
Drawdown Calculator
Calculate capital lost, remaining balance and recovery percentage after drawdown.
Calculator
Plan the numbers before entry
Results
Remaining Balance
$8,500
After drawdown
Capital Lost
$1,500
15% drawdown
Recovery %
17.65%
Gain needed to recover
Recovery percentage rises faster as drawdown deepens because gains are made from a smaller remaining balance.
Estimates use standard contract assumptions. Broker specs, spreads, commissions, swaps and account-currency conversion may vary.
Recovery pressure17.65%
Larger losses require disproportionately larger gains to return to breakeven.
Other Calculators
All ToolsHow traders use it
Traders use it to understand why controlling losses matters before increasing trade size.
Common mistakes
- - Underestimating recovery after large losses
- - Increasing risk during drawdown
- - Measuring only money lost and not recovery needed
Best practices
- - Set daily and weekly loss limits
- - Reduce size after drawdown
- - Track peak-to-trough performance
Important disclaimer
Calculator results are educational estimates only. Broker contract sizes, spreads, commissions, swap, slippage, margin rules and account currency conversion can materially change real trade outcomes.
FAQ
Drawdown FAQ
Answers for traders using this calculator before entering the market.
What is drawdown?
Drawdown is the decline from a previous account high to a lower balance.
Why is recovery percentage higher than loss percentage?
After a loss, the gain is calculated from a smaller balance, so recovery requires a larger percentage.
Can this prevent losses?
No. It helps visualize risk but cannot prevent trading losses.
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