📉
Drawdown Calculator
Percentage decline from a peak value to a trough value.
Drawdown
-22.00%
Drawdown measures the percentage decline from a peak value to a subsequent trough, a core measure of downside risk for any investment or trading strategy.
Because losses require proportionally larger gains to recover from, strategies with smaller maximum drawdowns can outperform higher-return strategies with deeper drawdowns over the long run.
FAQ
What is maximum drawdown?
Maximum drawdown is the largest peak-to-trough decline observed over a period — a key risk metric that shows the worst-case loss an investor would have experienced.
How much gain is needed to recover from a drawdown?
Recovery math is asymmetric — a 50% drawdown requires a 100% gain just to break even, which is why limiting large drawdowns matters more than it might first appear.