Losses and gains are not symmetrical. After a 50% loss, you need a 100% gain just to get back to where you started. This free loss recovery calculator shows the gain needed to break even after any loss, and estimates how long recovery might take at a given rate of return.
Loss Recovery Calculator
| Loss | Gain needed to recover |
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Recovery time assumes a constant annual return and no new contributions. Actual market recoveries have varied widely.
Why Recovery Is Harder Than the Loss
A gain is calculated on a smaller base after a loss. If $100 falls 50% to $50, a 50% gain only brings it back to $75. That’s why limiting large drawdowns is a central part of risk management. Read Market Volatility: How to Invest in Turbulent Times.
How to Limit Large Losses
- Diversify across assets – see asset allocation and rebalancing.
- Size positions so one trade can’t do serious damage – try the position size calculator.
- Avoid excessive leverage, which magnifies losses.
Learn More
This calculator is for general educational purposes only. Results are estimates based on the numbers you enter and simplified assumptions; they are not financial, investment, or tax advice. See our Disclaimer.