Example inputs are editable assumptions, not a published portfolio result.
Enter the loss from the peak
Enter the percentage decline from the original peak, not the percentage gain since the low. The result is the return needed on the remaining balance to reach that peak again.
Worked example: recovering a 20% loss
A balance falling from $10,000 to $8,000 has a 20% drawdown. Returning to $10,000 needs a $2,000 gain on the remaining $8,000, which is 25%. The calculator estimates the required gain, not how long recovery will take.
Recovery formula
Required gain (%) = drawdown / (100 − drawdown) × 100. The loss is measured from the original peak, while the recovery gain is measured from the reduced balance.
A 20% drawdown leaves 80% of the original balance, so recovery requires 25%. A 50% drawdown leaves half the capital, requiring a 100% gain. These are arithmetic relationships, not return forecasts.
Total loss and cash flows
Zero drawdown requires zero recovery. At a 100% drawdown the balance is zero, so no finite percentage return restores the original amount without adding capital.
Deposits, withdrawals, fees and taxes change the balance and should be analyzed separately. Recovery time cannot be inferred from the required gain.