Measure from the peak
Drawdown compares current capital with the highest relevant capital level.
ADVISORY TOOLS / DRAWDOWN
See why losses and recovery are not equal.
Enter peak and current capital to calculate drawdown and the percentage gain required to return to the previous peak from a smaller base.
CAPITAL-RISK TOOL
Drawdown Recovery Calculator
Gain required to return to the peak25.00%
Recovery is measured from the smaller current-capital base.
Capital decline₹20,000
Drawdown20.00%
Current capital₹80,000
Recovery amount₹20,000
This is arithmetic, not a return forecast. A required recovery percentage does not imply that recovery will occur.
REFERENCE TABLE
Loss and recovery are not symmetrical.
DrawdownGain to recover
−5%+5.26%
−10%+11.11%
−15%+17.65%
−20%+25.00%
−25%+33.33%
−30%+42.86%
−40%+66.67%
−50%+100.00%
USE THE MATH RESPONSIBLY
Protect capital before planning recovery.
Respect the smaller base
After a loss, the same rupee gain is a larger percentage of remaining capital.
Review the cause
Separate normal strategy variance from execution errors, concentration or a changed market regime.
Avoid recovery chasing
Increasing size after a loss can deepen drawdown instead of repairing it.
Calculation scope
This tool describes arithmetic only. It does not forecast returns, estimate recovery time or recommend increasing risk after a loss.