Drawdown Calculator

Enter your peak and trough equity values to instantly calculate drawdown amount, drawdown percentage, and the recovery factor needed to break even.

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Enter values and click Calculate to see results

Summary

Enter your peak and trough equity values to instantly calculate drawdown amount, drawdown percentage, and the recovery factor needed to break even.

How it works

  1. Enter the peak equity value (the highest account balance or portfolio value).
  2. Enter the trough equity value (the lowest point after the peak).
  3. The calculator instantly shows the absolute drawdown in currency units.
  4. Drawdown percentage = (Peak - Trough) / Peak × 100.
  5. Recovery factor = the percentage gain needed on trough equity to reach the peak again.
  6. Optionally enter a series of equity values to find the maximum drawdown across the entire series.

Use cases

  • Evaluate risk in a trading strategy by reviewing its historical maximum drawdown.
  • Understand how much gain is needed to recover from a losing streak.
  • Compare drawdown metrics across different investment portfolios.
  • Monitor live account health by tracking drawdown from the high-water mark.
  • Present risk metrics to investors or compliance teams.
  • Set drawdown stop-loss thresholds for automated trading systems.
  • Calculate worst-case scenario drawdown before deploying capital.
  • Back-test manual or algorithmic strategies for drawdown tolerance.

Frequently Asked Questions

Last updated: 2026-06-09 · Reviewed by Nham Vu