How much gain do you need to recover a loss?
Lose 50% and you need +100% to get back to where you started, not +50%. The deeper the fall, the faster the climb back grows. Here is the exact table.
Max drawdown meaning
Maximum drawdown is the largest fall from a peak to a later low before a new peak, as a % of the peak. If an account grows to $12,000, drops to $9,000 and then recovers, the maximum drawdown is 25% ($3,000 / $12,000). In a spreadsheet: keep a running peak (=MAX of the balance so far), then drawdown = balance / peak - 1, and the maximum drawdown is the lowest value in that column. The table below shows why it matters: a 25% drawdown needs a 33.3% gain just to get back.
The table
| Loss | Gain needed to get back | ₹1,00,000 becomes |
|---|---|---|
| -5% | +5.3% | ₹95,000 |
| -10% | +11.1% | ₹90,000 |
| -15% | +17.6% | ₹85,000 |
| -20% | +25.0% | ₹80,000 |
| -25% | +33.3% | ₹75,000 |
| -30% | +42.9% | ₹70,000 |
| -40% | +66.7% | ₹60,000 |
| -50% | +100% | ₹50,000 |
| -60% | +150% | ₹40,000 |
| -75% | +300% | ₹25,000 |
| -90% | +900% | ₹10,000 |
The formula
Gain needed = loss ÷ (1 − loss)
For a 30% loss: 0.30 ÷ 0.70 = 0.4286 → +42.9%.
The reason is simple: after a loss, you are earning on a smaller amount. ₹50,000 has to double to become ₹1,00,000 again.
What it means for a trader
- Small losses are cheap to repair. A 10% fall needs +11.1%. Most of the danger is in the big falls.
- Doubling up to win it back makes it worse. Bigger size after losses is how a 20% fall becomes 50%.
- Risk per trade controls the fall. At 1% per trade, even 10 losses in a row leaves about 90% of the account. At 10% per trade it leaves about 35%, which then needs nearly +187% to recover.
- Time matters too. At a steady +2% a month, recovering a 50% fall takes about 35 months.
How long does a recovery take?
| Loss | Months at +1%/month | Months at +2%/month |
|---|---|---|
| -10% | 11 | 6 |
| -25% | 29 | 15 |
| -50% | 70 | 36 |
Months rounded up; assumes the same gain every month, which real trading never gives. Used only to show the shape of the maths.
The practical lesson
Protecting against the big fall matters more than squeezing out extra gains. Decide a daily loss limit and a total fall where you stop and review, before you trade - not in the middle of a losing day.
The same maths in reverse
The table also explains why big gains vanish quickly. If a share rises 100% and then falls 50%, you are back where you started. A coin that goes up 300% and then falls 75% is also back to the start. When a post shows a huge gain, ask what a normal fall would do to it.
Example: two traders, same win rate
Both win half their trades. Trader A risks 1% per trade, Trader B risks 10%. After a run of 6 losses, A is down about 5.9% and needs +6.2% to recover. B is down about 46.9% and needs about +88% - many months of good trading for the same six losses.
Losses in a row, in one table
How far the account falls after a run of losing trades, and the gain then needed:
| Risk per trade | After 5 losses | Gain needed | After 10 losses | Gain needed |
|---|---|---|---|---|
| 1% | -4.9% | +5.2% | -9.6% | +10.6% |
| 2% | -9.6% | +10.6% | -18.3% | +22.4% |
| 5% | -22.6% | +29.2% | -40.1% | +67.0% |
| 10% | -41.0% | +69.4% | -65.1% | +186.8% |
The first two rows are an annoying month. The last row is a different life. The main number you control in advance is the risk per trade.
General information about the past and about your own numbers. Not financial advice and not a recommendation. It does not consider your goals or situation.
Frequently asked questions
- How much do I need to gain to recover a 50% loss?
- +100%. Half of your money has to double to get back to the start.
- How much to recover a 20% loss?
- +25%. The formula is loss ÷ (1 − loss): 0.20 ÷ 0.80 = 0.25.
- Why is recovering harder than losing?
- Because the gain is earned on a smaller amount. Each percent of loss takes more than a percent of gain to repair, and the gap grows quickly after about -30%.
- How can I avoid big drawdowns?
- Keep risk per trade small, use a daily loss limit, and never increase size to win back losses.
Try your own number
Type your loss into the TradingCheckup search box and get the gain you need, worked out for you.