Maximum Drawdown Calculator

Written by Great Medico

Updated September 25, 2026 •2 min read

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With Maximum Drawdown Calculator, the useful part is not just the headline result but the relationship between the displayed inputs. It turns those values into one focused figure whose arithmetic can be checked.

What this calculator does

Maximum Drawdown Calculator measures the deepest loss from an entered peak value to the subsequent low and also shows how much gain is needed to climb back to the peak. It works from peak value, lowest value after peak, and cagr for recovery. For Maximum Drawdown Calculator, everything in the result comes from those form values, so you can trace a change in output back to a specific input.

How to use it

Enter Peak value, Lowest value after peak, and CAGR for recovery. For Maximum Drawdown Calculator, enter percentage or rate fields on the scale displayed by the form rather than converting them to an unstated format. Use one currency for all monetary fields in Maximum Drawdown Calculator; the currency selector formats the result and does not convert exchange rates. Before calculating, recheck Peak value, Lowest value after peak, CAGR for recovery against the source numbers you intend to analyze.

How the calculation works

Maximum drawdown = (lowest value − peak value) ÷ peak value. The recovery gain is peak ÷ low − 1, and, when a recovery CAGR is entered, recovery time is estimated with logarithmic compound-growth math. In Maximum Drawdown Calculator, the calculator applies this relationship to the relevant values used by the stated formula. For Maximum Drawdown Calculator, if the output looks unexpected, recheck the displayed inputs before interpreting the number.

Example

If a portfolio falls from $100,000 to $72,000, the drawdown is −28%. Returning from $72,000 to $100,000 requires a 38.89% gain; at a steady 10% CAGR, the modeled recovery takes about 3.44 years. To test sensitivity in Maximum Drawdown Calculator, change one displayed input at a time and recalculate.

How to interpret the result

A more negative drawdown means a larger peak-to-trough capital loss. The recovery percentage is intentionally larger than the loss percentage because gains are earned from the smaller post-loss base. For a clean comparison with Maximum Drawdown Calculator, keep the displayed input definitions and measurement basis consistent across scenarios.

Limitations and notes

This is a two-point drawdown calculation, not a scan of an entire price history. The optional recovery-time estimate assumes a constant CAGR and does not model interim volatility, withdrawals, contributions, taxes, or sequence-of-returns risk. Recalculate Maximum Drawdown Calculator when the source values entered on the form change materially.