Founding Member pricing: 40% off for life. Limited to 100 founding members. See plans →

Learn · Knowledge Center Free access

Drawdown recovery calculator

How much gain — and how many years — it takes to recover from a loss.

Gain needed to recover–

Years to recover–

Example–

Loss	Gain needed	Years at 8% per year

Why losses hurt more than gains help

A loss shrinks the base that must grow back. After −20% you need +25%; after −50%, +100%; after −80%, +400%. The deeper the loss, the faster the required gain rises.

Why this matters for your strategy

Two investments with the same average return can end up far apart if one of them suffers much deeper drawdowns. Limiting the depth of losses keeps compounding working — and makes it far easier to stay invested. That is the core idea behind trend-following strategies; compare the maximum drawdowns of 30 markets.

Recovery time assumes a steady return after the loss. Real recoveries can be much faster (2020) or much slower (Japan after 1989).

Compound interest calculator

How much could your savings grow with regular investing and compounding?

Savings rate & investing calculator

Your savings rate, what investing it could become, and your financial-independence number.

Start investing — learning path

Eight short lessons from the first euro to a running portfolio.

Illustration only — not investment advice and not a forecast. Real returns vary from year to year and can be negative. Disclaimer.