Drawdown Calculator

A drawdown is the fall from an account's highest balance to a later low. Enter your peak and current balance to see the drawdown and the gain you need to get back, or enter your risk per trade and a losing streak to see how deep a run of losses would take the account.

Drawdown from your balance

Peak balance ($):

Lowest / current balance ($):

Drawdown: 25.0%; $3,000 below peak
Gain to recover: 33.3%; to get back to the peak

Drawdown from a losing streak

Risk per trade (%):

Losses in a row:

Drawdown: 18.3%; after 10 losses
Gain to recover: 22.4%; to get back to the start

Each loss is 2% of the balance at that moment (fixed-fractional sizing), so the drawdown is slightly less than 2% × 10. Slippage and gaps can make real losses larger.

Trading from India or Nigeria? Check the rules first

India

Exness, XM, Vantage Markets, IC Markets and Forex4you are named on the Reserve Bank of India's Alert List of entities not authorised to deal in forex or to operate electronic trading platforms (ETPs) for forex transactions (Alert List updated as on November 19, 2025). Source: Reserve Bank of India: Alert List (updated as on November 19, 2025); Outlook Money: RBI's updated Alert List
Markets4you is the new name of Forex4you (rebrand reported in 2024). The RBI Alert List names Forex4you (forex4you.com); it does not list the name Markets4you. Source: Reserve Bank of India: Alert List (updated as on November 19, 2025); Finance Magnates: Forex4you becomes Markets4you
Under FEMA, resident persons may undertake forex transactions only with authorised persons and for permitted purposes; electronic forex transactions must be undertaken only on ETPs authorised by the RBI or on recognised stock exchanges (NSE, BSE, MSE). Residents who trade forex on unauthorised ETPs are liable to penal action under FEMA. Source: Reserve Bank of India: FAQs on unauthorised forex trading platforms
The RBI says the Alert List is not exhaustive: an entity that is not on it should not be assumed to be authorised by the RBI. Source: Reserve Bank of India: FAQs on unauthorised forex trading platforms

Nigeria

The Securities and Exchange Commission (SEC) Nigeria says that under the Investments and Securities Act (ISA) 2025 it is an offence to operate an online foreign exchange (forex) trading platform in Nigeria without SEC registration. Source: FinancialEDGE: SEC warns unregistered digital and forex trading platforms now a crime under ISA 2025; Gazette Nigeria: ISA 2025 bans unregistered digital asset exchanges, online forex platforms

The calculators only do arithmetic; they do not mean any broker is available, licensed or legal where you live.

Drawdown formulas

Drawdown = (Peak − Trough) ÷ Peak

Gain to recover = Drawdown ÷ (1 − Drawdown)

Drawdown after N losses = 1 − (1 − Risk per trade)ᴺ

Recovery is harder than the loss: after a 50% drawdown, the remaining half has to double (+100%) to get back to the peak. That asymmetry is why many traders cap risk per trade at 1–2%.

The losing-streak formula assumes fixed-fractional sizing: each trade risks the same percentage of the balance at that moment, so each loss is a little smaller in dollars than the one before.

Worked examples

Peak $12,000, low $9,000

Drawdown = ($12,000 − $9,000) ÷ $12,000 = 25%
Gain to recover = 0.25 ÷ 0.75 = 33.3%
Check: $9,000 × 1.333 = $12,000

A 25% drawdown needs a 33.3% gain to recover.

10 losses in a row at 2% risk

Remaining = 0.98¹⁰ = 0.8171
Drawdown = 1 − 0.8171 = 18.3%
Gain to recover = 0.1829 ÷ 0.8171 = 22.4%

Ten 2% losses cost 18.3% of the account, not 20%.

10 losses in a row at 5% risk

Remaining = 0.95¹⁰ = 0.5987
Drawdown = 1 − 0.5987 = 40.1%
Gain to recover = 0.4013 ÷ 0.5987 = 67.0%

At 5% risk the same streak needs a 67% gain to recover.

Results are before trading costs and assume every loss is exactly the planned risk; gaps and slippage can make losses larger.

Drawdown vs gain needed to recover

Drawdown	Gain needed to recover
5%	5.3%
10%	11.1%
20%	25.0%
25%	33.3%
30%	42.9%
40%	66.7%
50%	100.0%
60%	150.0%
75%	300.0%
90%	900.0%

Frequently asked questions

How do you calculate drawdown?

Drawdown = (peak balance − lowest balance) ÷ peak balance. An account that grew to $12,000 and then fell to $9,000 has a 25% drawdown.

What is maximum drawdown?

Maximum drawdown is the largest peak-to-trough fall over a period. It is a common way to judge how painful a strategy or signal history has been, alongside its return.

How much gain do I need to recover a 50% loss?

100%. After losing half, the remaining balance must double to get back to the start. A 20% loss needs 25% and a 30% loss needs 42.9%.

What is an acceptable drawdown?

There is no single number; it depends on your goals and how much loss you can live with. Set your own limit before you trade and size positions to stay inside it.

How do I reduce drawdown?

Risk less per trade, limit how many correlated positions you hold at once, and stop trading for the day or week after a set loss. Ten losses at 1% risk cost 9.6% of the account; at 5% risk they cost 40.1%.