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
Drawdown Amount
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Drawdown %
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Recovery Needed
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Peak
Trough
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Calculation Breakdown
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
- Enter the peak equity value (the highest account balance or portfolio value).
- Enter the trough equity value (the lowest point after the peak).
- The calculator instantly shows the absolute drawdown in currency units.
- Drawdown percentage = (Peak - Trough) / Peak × 100.
- Recovery factor = the percentage gain needed on trough equity to reach the peak again.
- 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