Free trading calculator

Drawdown Calculator

Measure the decline from an account peak and see how much growth is required to recover.

Drawdown inputs

Enter your account values

Drawdown measures the decline from a previous account peak. Recovery percentage shows the gain required from the current balance to reach the selected target.

Current drawdown

20%

$5,000.00

Peak balance
$25,000.00
Current balance
$20,000.00
Recovery amount
$5,000.00
Recovery gain required
25%

How it works

Drawdown and recovery are not symmetrical

A larger loss requires an even larger percentage gain to return to the original balance.

1. Enter the peak

Use the highest account balance reached before the decline.

2. Enter the current balance

This determines the dollar and percentage drawdown from the peak.

3. Review recovery needs

The calculator shows the gain required from the current balance to reach the target.

Drawdown formula

Drawdown % = (peak balance − current balance) ÷ peak balance

Recovery % = (target balance − current balance) ÷ current balance

Example

  • $25,000 peak balance
  • $20,000 current balance
  • $5,000 drawdown
  • 20% drawdown
  • 25% recovery gain required to return to $25,000

Why drawdown matters

Drawdown helps measure the depth of losses from a previous equity peak. It provides context that total P&L alone cannot.

A strategy can be profitable over time while still producing drawdowns that are difficult to tolerate or recover from.

Important limitations

This calculator measures a simple peak-to-current decline. It does not model future returns, deposits, withdrawals, taxes, fees, or changing position sizes.

Historical drawdown does not predict future results. This tool is educational and is not financial advice.

Track the full equity curve

See drawdown in the context of your trading history.

TradeStaxx helps connect drawdown with setups, accounts, sessions, and the decisions that created the decline.