Compare a peak value with a lower current value. Recovery starts from the remaining amount, which explains why the required gain is larger than the loss percentage.
How the calculation works
Drawdown = (peak - current) ÷ peak. Required recovery gain = (peak - current) ÷ current.
Worked example
Example: a fall from 100 to 60 is a 40% drawdown. Recovering the lost 40 from a base of 60 requires a 66.666667% gain.
How to use the result
Use comparable values, such as the same token quantity or a portfolio adjusted for external deposits and withdrawals.
At a current value of zero, no finite percentage gain can recover the peak. A new contribution is a different calculation.
What this result leaves out
- This arithmetic does not forecast a recovery or include future deposits, fees or taxes.
Method and sources
Calculation method reviewed 23 October 2026. This is an estimate from your inputs, not investment or tax advice.