Drawdown & Recovery
If I lose 40%, what does recovery really take?
A fall and the gain that undoes it are not the same number, and the gap widens fast. Set a drawdown and see exactly what getting back to even requires.
Your scenario
Recovery assumptions
Annual returns to test. Each one answers: how long, at that pace?
Gain required to get back to even
66.7%
After a 40% fall, that is what the remaining capital has to produce.
Capital after the fall
€60,000
At 5.0% a year
10.5 years
At 7.0% a year
7.6 years
At 10.0% a year
5.4 years
The left half is the fall; the right half is the gain it takes to undo it. They are equal only at zero.
Show these figures as a table
| Fall from the peak | Gain required |
|---|---|
| 5% | 5% |
| 10% | 11% |
| 20% | 25% |
| 30% | 43% |
| 40% | 67% |
| 50% | 100% |
| 60% | 150% |
| 70% | 233% |
| 80% | 400% |
Method, sources and limits
- Method version
- 1.0.0
- The required gain is exact arithmetic: 1/(1−d)−1. The time is a projection at a constant assumed rate and has nothing to do with how long any real market took — the historical references below are labelled separately for that reason.
Past performance is not a guide to future returns. These figures describe what happened over the period shown and nothing else.
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