Maximum Drawdown Calculator

A 50% loss requires a 100% gain to recover. The math is asymmetric: losing half means you need to double to get back to the starting point.

Recovery factor compares the recovery percentage to the drawdown percentage. A factor above 1.0 means you have more than recovered from the drawdown.

It measures the worst-case scenario loss from peak to trough. Investors with low risk tolerance should compare strategies by their maximum drawdown.