Drawdown recovery calculator
Markets fall. The question that matters when they do: how long until they get back to where they were? Drop your numbers in below.
The mistake everyone makes: assuming a 30% loss takes a 30% gain to recover. It doesn't. The math is asymmetrical, and the bigger the drop, the more dramatic the asymmetry.
You lost 20%, but you need to gain more than 20% back. The math is not symmetrical.
Assumes a steady annual return. Real markets recover in fits and starts.
Why drawdowns hurt more than they look
Asymmetric math. Lose 50%, you need a 100% gain to break even. Lose 75%, you need a 300% gain. This is why protecting against deep drawdowns matters more than chasing the last few points of return.
Time is the real cost. A 30% drop at an 8% annual rate takes ~4.6 years to recover. Those years are years you could have been compounding from a higher base. The opportunity cost is bigger than the headline loss.
Behavior is the killer. Most investors don't lose to drawdowns directly — they lose because they sell at the bottom. The math tool above only works if you stay invested through the drop.
This is why we care about Sharpe and Sortino. Two portfolios with the same average return can have wildly different drawdown profiles. The one that drops less in bad years compounds faster over the long run, even if it gives up some upside in good years.
Built to protect on the downside.
Our portfolios target strong returns with smaller drawdowns than the S&P. Look at the max-drawdown stat on each portfolio page and compare.
See the portfolios