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Drawdown calculator: the gain needed to get back.

A 50% fall needs a 100% gain to get back. Move the slider and watch how the cost of a fall grows.

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Gain needed to get back42.9%
Years to recover at 12.0%3.1 years
₹1 lakh after the fall₹70,000
0%125%250%375%500%5%20%40%60%80%
  • Gain needed after a fall of
Gain needed = 1 / (1 - fall) - 1. The cost of a fall grows faster than the fall itself.

01How it works

In plain words.

After a fall of d, what is left is (1 - d) of the peak. To get back, that has to grow by 1 / (1 - d). The years needed at a steady return follow from the same compounding as any other growth.

The formula

Gain needed = 1 / (1 - d) - 1Years to recover = ln(1 / (1 - d)) / ln(1 + r)

02Worked example

The default numbers, by hand.

A 30% fall needs a 42.9% gain. At 12% a year that takes ln(1.4286) / ln(1.12) = 3.1 years.

InputValue
Fall from the peak30%
Return a year after the fall12%
ResultValue
Gain needed to get back42.9%
Years to recover at 12.0%3.1 years
₹1 lakh after the fall₹70,000

03Key concepts

What to know before you use it.

Why drawdown matters as much as return

Two strategies with the same CAGR can have very different falls on the way. The deeper the fall, the longer the wait and the harder it is to stay invested.

Reading a strategy page

Every RupeeCase strategy page shows its model, back tested maximum drawdown next to its CAGR, with the dates.

Good to know

  • Compare a strategy’s maximum drawdown with the fall you are prepared to sit through.
  • Diversifying across assets is one way to reduce the depth of falls; the asset allocation calculator shows a textbook split.

04Assumptions

What the calculator assumes.

  • A single fall followed by a steady return; real recoveries are uneven.

05Questions

Asked about the Drawdown and recovery.

How much gain is needed to recover a 50% loss?

100%. Half of the money has to double to return to where it was.

What is maximum drawdown?

The largest fall from a peak to a later low over a period, in percent. It measures the worst loss an investor would have sat through.

06Keep going

Learn the idea, see it applied.

Module 2.3Risk Metrics That Matter8 min read, Path 02Module 2.4How Backtesting Works8 min read, Path 02Module 4.5Risk Management for Systematic Portfolios9 min read, Path 04The matching indexDynamic Asset AllocatorOne fixed equity core, two regime switches. The machine decides how much risk to carry.CAGR45.2%Sharpe2.32Max DD−10.6%Model, back tested, as of 27 Apr 2026. Not client returns, not a promise. Risk band: Moderately High.

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Education only, not investment advice. RupeeCase is a technology platform operated by QC Alpha Technologies Pvt Ltd; it is not a fund, a PMS or a SEBI registered investment adviser. Model returns are back tested and not a promise of future returns. Figures carry the date they were checked.