RISK MANAGEMENT CALCULATOR

Drawdown Calculator

Calculate your exact peak-to-trough account drawdown percentage, monetary loss, and the compounding percentage gain required to recover back to your starting equity.

Drawdown Presets:

Account Balances

$
$
Current Capital Left80.0%

Used to estimate how many months you will need to recover using realistic risk.

⚠️ Prop Firm 10% Max Drawdown Breached

Your account is down 20.0%. Most funded evaluations disqualify accounts at 8-10% total max loss.

Drawdown & Recovery Analysis

Mathematical summary of capital loss and required return

Current Drawdown
-20.00%
-$2,000.00
Required Gain to Breakeven
+25.00%
to reach $10,000
Est. Recovery Time
5 mo
at 5% return/mo
Capital Preserved80.0%

The Non-Linear Math of Trading Drawdowns

Why small losses are manageable, but deep losses permanently cripple accounts:

Loss %Remaining CapitalGain % Needed to RecoverRisk Level
-5%95%+5.26%Low
-10%90%+11.11%Moderate
-15%85%+17.65%Caution
-20%80%+25.00%Severe
-30%70%+42.86%Critical
-40%60%+66.67%Dangerous
-50%50%+100.00%Extreme
-60%40%+150.00%Catastrophic
-75%25%+300.00%Near Total
-90%10%+900.00%Terminal
RECOMMENDED CALCULATOR

Position Size Calculator

Fix your risk at 1% per trade to mathematically prevent catastrophic drawdowns before they happen.

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LESSON GUIDE

Managing Drawdowns & Tilt Spirals

Learn the psychological and operational protocols professional funds implement during losing streaks.

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Reviewed by Francis Xavier

(Senior Forex Educator & Market Analyst)
Verified Educator

The Drawdown Calculator equations and algorithms have been independently verified. This calculator uses institutional-grade mathematical models and has been reviewed by senior trading educators for mathematical accuracy, formula validity, and alignment with strict risk management principles.

Read about our educational & auditing standards Test your trading plan with the AI Coach

Frequently Asked Questions

Because losses reduce the principal capital available to generate future returns. For example, if a $10,000 account loses 50% ($5,000), the remaining balance is $5,000. To reach $10,000 again from $5,000, you must make $5,000 on a $5,000 base — which is a 100% gain! The formula is: Required Gain % = [Loss % / (100 - Loss %)] × 100.

Peak-to-Trough drawdown measures any decline from a specific historical account peak to its subsequent low point. Maximum Drawdown (MDD) is the single deepest peak-to-trough decline experienced across the entire trading track record. It is the primary metric hedge funds and prop firms use to measure downside risk.

Most proprietary trading firms (e.g. FTMO, FundingPips) enforce a 5% maximum daily loss and a 10% maximum overall trailing/static drawdown. Breaching either limit immediately disqualifies the account. Use this calculator to know your exact remaining dollar buffer before entering new positions.

Strict position sizing is the single most effective defense. By risking only 1% of total account capital per trade, you would need 20 consecutive losing trades just to experience an 18% drawdown. Compounding risk math ensures smaller position sizes as your balance decreases.