Free tool

Drawdown Recovery Calculator — How Much Gain Do You Need to Break Even?

Q: How much gain do I need to recover from a 30% loss?

You need about +42.9% to recover from a 30% drawdown. The formula is 1 / (1 − 0.30) − 1 = 0.4286. Because the gain is calculated on a smaller base, the required recovery is always larger than the loss itself.

Q: Why do I need more than 50% gain to recover a 50% loss?

After a 50% loss, your capital has halved, so every percentage of gain is earned on half the original base. To get back to the starting balance you need to double the remaining capital — a +100% gain.

Q: What is the drawdown recovery formula?

Required recovery = 1 / (1 − drawdown) − 1, with drawdown expressed as a decimal. Example: a 20% drawdown gives 1 / 0.8 − 1 = 0.25, so +25% is needed to break even.

Q: Is drawdown recovery different for prop firm accounts?

The math is identical, but prop firm accounts usually have a maximum drawdown limit (often 6–10%). Hitting it ends the account before recovery is possible, which is why funded traders manage drawdown much more tightly than the pure break-even math suggests.

Losses and gains are not symmetric: a 33% drawdown needs +50% just to get back to zero. Enter your drawdown and see the real recovery math — instantly, no login.

Your drawdown

Current drawdown (%) 20%

Or type it exactly

Optional target

Target above starting balance (%) 0%

Gain needed to break even

+25.0%

on your remaining capital

Gain needed to reach target

+25.0%

back to start

Recovery vs. loss ratio

1.25×

how much harder the way back is

Know your drawdown before it happens

The ReziFX journal tracks your real drawdown from every captured trade — and the built-in Monte Carlo simulator shows the drawdown your strategy should expect.

Try ReziFX free Monte Carlo simulator

Drawdown recovery reference table

Loss (drawdown)	Gain needed to break even	Recovery vs. loss
−5%	+5.3%	1.05×
−10%	+11.1%	1.11×
−15%	+17.6%	1.18×
−20%	+25.0%	1.25×
−25%	+33.3%	1.33×
−30%	+42.9%	1.43×
−33.3%	+50.0%	1.50×
−40%	+66.7%	1.67×
−50%	+100%	2.00×
−60%	+150%	2.50×
−70%	+233%	3.33×
−80%	+400%	5.00×
−90%	+900%	10.0×
−95%	+1,900%	20.0×

The formula, explained

Required recovery = 1 / (1 − drawdown) − 1, with the drawdown as a decimal. A 20% drawdown gives 1 / 0.8 − 1 = 0.25, so you need +25%. The asymmetry exists because after a loss, every gain is earned on a smaller capital base.

This is why professional risk management is obsessed with limiting drawdown rather than chasing returns. Below roughly 20% drawdown the recovery stays in the same order of magnitude as the loss. Beyond 50% it grows explosively: −70% needs +233%, and −90% needs +900%.

For funded and prop-firm accounts the practical limit is even tighter: most challenges end the account at 6–10% drawdown, long before the recovery math becomes dramatic. Knowing your strategy's expected drawdown — not just its win rate — is what keeps an account alive.

Frequently asked

How much gain do I need to recover from a 30% loss?

About +42.9%. The formula is 1 / (1 − 0.30) − 1 = 0.4286. Because the gain is calculated on a smaller base, the required recovery is always larger than the loss itself.

Why do I need more than 50% gain to recover a 50% loss?

After a 50% loss your capital has halved, so every percent of gain is earned on half the original base. To get back to the starting balance you have to double the remaining capital — a +100% gain.

What is the drawdown recovery formula?

Required recovery = 1 / (1 − drawdown) − 1, with drawdown as a decimal. Example: 20% drawdown → 1 / 0.8 − 1 = 0.25 → +25% needed to break even.

Is drawdown recovery different for prop firm accounts?

The math is identical, but prop firm accounts have a maximum drawdown limit (often 6–10%). Hitting it ends the account before any recovery is possible — which is why funded traders manage drawdown much more tightly than the pure break-even math suggests.

Educational tool. Not financial advice — trading involves substantial risk of loss.