This calculator will show you how much profit you need to make to break even from a drawdown.
Fill out the form below to know precisely the size of your drawdown and the gains that you will need to get out of it.
What is the Drawdown and break-even calculator for?
You can use the calculator for forex, stocks, crypto, or any other markets.
The drawdown calculator works great to calculate your equity drawdown, but also if you want to calculate individual coins or stocks drawdown and how much they have to gain in percent to go back to all-time-high.
I created the calculator to help traders understand the situation they are in. Many new traders don’t realize how hard it can be to recoup our equity when they are in a drawdown.
Knowing and acknowledging our current situation as traders are crucial. Ignoring facts that are in front of us will probably only deteriorate the situation.
Here’s an example of different drawdowns and the gains needed to go back even:
How to calculate your drawdown
Calculating your current drawdown percentage is pretty easy. You only need to know how much you started with and your current equity.
From there, we will apply this formula:
- Starting equity: 10,500$
- Current equity: 8,755$
(1 - (8755 / 10500)) X 100 = 16.619% or (1 - (Current equity / Starting equity)) X 100 = Current Drawdown
How to calculate the gain needed to break even
To calculate the percentage of gains needed to break even, we will need to know our current drawdown value.
Keeping the same value as before, let’s say we are currently in a 16.619% drawdown.
This formula will tell us how much we will need to gain to breakeven:
(1 / (1 - 0.169)) - 1 = 0.203 or 20.3% (1 / (1 - Current Drawdown)) - 1