Drawdown Recovery Calculator
Understand non-linear loss mathematics. As losses deepen, the percentage gain required relative to remaining equity expands exponentially.
Drawdown Recovery Calculator
Calculate exact percentage gains and trade estimates required to recover from capital losses.
1. Account & Risk Parameters
2. Required Recovery Metrics
Capital Lost-£2,500 (25.0%)
Required Percentage Gain+33.3%
Strategy Expected Value (EV)+0.25 R
Estimated Trades to Breakeven134 trades
Deep Drawdown WarningA 25% loss requires a 33% gain to recover. Increasing risk per trade to speed up recovery exponentially increases risk of total account ruin.
Non-Linear Recovery Reference Matrix
-10% Loss
+11%
-20% Loss
+25%
-30% Loss
+43%
-50% Loss
+100%
-75% Loss
+300%
-90% Loss
+900%
Formula Explanation & Worked Example
The percentage recovery required is calculated using the formula:
Required Gain % = ( Loss Amount / Remaining Equity ) × 100
Worked Example:
Suppose an account starts with £10,000 and suffers a 50% drawdown (£5,000 loss). The remaining balance is £5,000. To return to the initial £10,000 starting capital, the trader must make £5,000 profit on the remaining £5,000 equity.
£5,000 Profit / £5,000 Balance = 100% Gain Required.