Drawdown Recovery Calculator

Six-step workflow

1. Copy current values from the official account, platform, or journal.
2. Keep every unit consistent; do not mix ticks, points, pips, dollars, or percentages.
3. Enter the planning assumptions without changing them to force a preferred answer.
4. Calculate and read every output, including the warning below the headline number.
5. Verify instrument specifications and binding firm rules at the official source.
6. Save the result with its date and compare it with what actually happened.

Understand the output

Formula: Recovery percentage = (peak − current) ÷ current. Compounded months use the entered monthly scenario rate.

Worked example: A fall from $50,000 to $45,000 is a 10% drawdown but requires an 11.11% gain from $45,000 to recover.

Common mistakes: increasing risk to recover faster, confusing drawdown with required gain, using an optimistic pace, and ignoring withdrawals.