Max Drawdown Calculator
Paste an equity curve and compute the maximum drawdown — the largest percentage drop from a peak to a subsequent trough — plus the gain required to recover.
Calculator
Equity values in order, separated by commas, spaces, or new lines.
Formula
- Drawdown at t = (Peak so far − Value at t) ÷ Peak so far
- Max drawdown = the largest such drawdown over the series
- Recovery gain required = MaxDD ÷ (1 − MaxDD)
How it works
Maximum drawdown measures the worst peak-to-trough decline an equity curve experienced. It captures the depth of the largest losing stretch — a key dimension of risk that average returns hide.
The recovery figure highlights an asymmetry that trips people up: a 50% drawdown requires a 100% gain to get back to even, because the gain is computed on the smaller, post-loss base.
This is a backward-looking statistic about the numbers you provide. It does not predict future drawdowns and is not advice.
Example use cases
50% drawdown
Curve 100, 120, 90, 110, 60, 80 → peak 120, trough 60, max drawdown 50%, recovery gain required 100%.
No drawdown
A rising curve 100, 110, 120 has 0% maximum drawdown.
Frequently asked questions
What format should the equity curve be in?+
A list of account/equity values in chronological order, separated by commas, spaces, or new lines — for example 100, 120, 90, 110.
Why is recovery harder than the drawdown itself?+
Because percentage gains and losses are not symmetric. After a 25% loss you need a 33% gain to recover; after 50% you need 100%. The deeper the drawdown, the disproportionately larger the required recovery.