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Drawdown recovery calculator

A 50% fall needs a 100% gain to recover. This calculator shows the uncomfortable arithmetic for any drawdown, with the formula and a worked example.

By TokenTrail Editorial3 min read · 3 sources
Steep mountain trail climbing above a forested valley

Photo: “Bear Creek National Recreation Trail” by snowpeak, CC BY 2.0, via Flickr (edited: cropped and resized).

Quick answer

To recover from a fall of d percent you need a gain of d ÷ (100 − d) × 100 percent. A 20% drop needs +25%, a 50% drop needs +100%, and a 90% drop needs +900%. Losses and gains are not symmetric.

Key points

  • 1Percentage losses and percentage gains are measured from different starting values, so they do not cancel out.
  • 2The gain needed grows faster than the loss: it doubles the loss at 50% and is ten times the loss at 90%.
  • 3An assumed yearly return turns the required gain into a number of years — an illustration, not a forecast.

Inputs

Leave blank if you only want the gain needed.

Gain needed to get back to the peak

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Value must multiply by
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Years at that yearly return
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Runs entirely in your browser. Nothing you type is sent anywhere. Results are arithmetic, not advice — read the risk disclosure.

What formula does this calculator use?#

Gain needed (%) = (1 ÷ (1 − d) − 1) × 100, where d = drawdown as a decimal

If a value falls to (1 − d) of its peak, it must be multiplied by 1 ÷ (1 − d) to return to the peak. Subtract 1 and convert to a percentage to get the gain needed.

The optional second result asks how many years that recovery would take if the asset then grew at a steady yearly rate r. It uses compound growth: years = ln(1 ÷ (1 − d)) ÷ ln(1 + r). Real returns are never steady, so treat this only as a way to feel the size of the hole. The SEC’s investor site explains how compounding works in its compound interest calculator [1].

How big is the hole after common drawdowns?#

Gain needed to recover, computed with the formula above
Fall from peakValue left (per $100)Gain neededMultiple needed
10%$90+11.1%1.11×
20%$80+25%1.25×
50%$50+100%2×
75%$25+300%4×
90%$10+900%10×
StepValue
Value after a 50% fall$500
Multiple needed to return to $1,000 = 1 ÷ (1 − 0.5)2×
Gain needed = (2 − 1) × 100+100%
Years at 10% a year = ln(2) ÷ ln(1.10)≈ 7.3 years
Same for a 75% fall = ln(4) ÷ ln(1.10)≈ 14.5 years

The 10% yearly rate is an assumption for illustration only. Crypto-asset prices can fall and rise quickly, and you may lose all of the money you invest [2].

Why does this matter for crypto beginners?#

Crypto-assets have historically had deep drawdowns, and regulators warn that prices can fall and rise quickly over short periods [2]. The SEC’s investor education site advises that the only money you should put at risk in a speculative investment is money you can afford to lose entirely [3]. Knowing the recovery arithmetic before you invest is part of deciding how much that is.

What does the calculator leave out?#

  • Fees, taxes and slippage, which make the real recovery harder.
  • Money added or withdrawn during the drawdown.
  • Volatility drag: an asset that swings up and down can end lower than one with the same average return but smaller swings.
  • The possibility that the asset never recovers at all.

Frequently asked questions#

Why isn’t a 50% loss fixed by a 50% gain?

A 50% gain is measured from the new, lower value. $500 plus 50% is $750, not $1,000.

Can I enter a 100% drawdown?

No. A 100% loss leaves nothing to grow, so no percentage gain can recover it. The calculator accepts values below 100%.

Is the yearly return a prediction?

No. It is a number you choose to illustrate time. Past returns of any asset do not tell you future returns.

Does the calculator store what I type?

No. It runs in your browser and sends nothing to us.

The bottom line#

Drawdowns compound against you: the deeper the fall, the more disproportionate the gain needed to undo it. Use the calculator to set limits before you invest, not to estimate when a loss will come back.

Sources#

Grade A = primary source (regulator, protocol specification, client code, original author). Grade B = expert secondary source used for explanation only.

  1. AU.S. SEC, Investor.gov. Compound Interest Calculator, 2026.
  2. AEuropean Supervisory Authorities (EBA, ESMA, EIOPA). EU financial regulators warn consumers on the risks of crypto-assets, 2022.
  3. AU.S. SEC, Investor.gov. Exercise Caution with Crypto Asset Securities: Investor Alert, 2026.