Maximum Drawdown Calculator

Your details

The highest portfolio or investment value before the decline began.
The lowest value reached after the peak, during or at the end of the drawdown.
The expected compound annual growth rate used to estimate how many years recovery will take. Leave at 10% if unsure.
%
Maximum DrawdownSignificant drawdown
-35%

Percentage drop from peak to trough

Dollar loss35,000
Years to recover4.5years
Gain needed to recover0.54%
Recovery factor1.54
-35% %
Severe<-40%Significant-40%--20%Moderate-20%--10%Minor-10%+

This is a significant drawdown of 35.00%.

  • A 35.00% drawdown from 100,000 to 65,000 requires a 53.85% gain just to break even, not a mirror-image recovery.
  • At 10% annual growth, the portfolio would need approximately 4.5 years to return to its peak.
  • Drawdowns above 20% are often associated with bear markets and can take multiple years to recover.
  • Maximum drawdown is a backward-looking metric: it measures the worst loss already observed, not a forecast of future risk.

Next stepCompare this drawdown against your risk tolerance. If the loss would have caused you to sell, consider a more conservative allocation with lower expected MDD.

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