How this calculator works
For a series, each value is compared with the highest value observed before or at that point. The largest percentage decline is the maximum drawdown. A peak/trough pair measures only that selected episode; the caller must ensure the trough occurred after the peak. This page reports a positive loss magnitude. Recovery time assumes a constant positive effective annual growth rate and no new money.
Formula
Drawdown = (peak - trough)/peak. Required recovery gain = peak/trough - 1. Recovery years = ln(peak/trough)/ln(1+g), for positive trough and growth g.
Worked example
A fall from $100 to $75 is a 25% drawdown and needs a 33.333333% gain to recover. A fall from $100 to $50 is a 50% drawdown and needs a 100% gain.
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Frequently asked questions
Why is the recovery gain larger than the loss percentage?
The recovery percentage starts from the smaller trough balance rather than the original peak.
Can a zero balance recover?
Percentage growth on zero remains zero. New contributions would require a different recovery model.
Does adding cash make a series look safer?
It can. Use a consistently adjusted value or total-return series when external cash flows would otherwise hide losses.