Calculate the maximum drawdown from your equity curve or portfolio values. Understand your worst peak-to-trough decline and how much gain is needed to recover.
Calculate the maximum drawdown from your equity curve or portfolio values. Understand your worst peak-to-trough decline and how much gain is needed to recover.
Enter portfolio values over time — one per line, or comma-separated. Can be daily balance, monthly NAV, or cumulative P&L.
Separate values with new lines, commas, or spaces. Minimum 2 values needed.
DETAILS
This section explains what the calculator does, what goes into the result, and how to interpret the output so you can apply it confidently.
This calculator turns a few key inputs into a clear output you can act on — a number that traders and investors commonly use for planning and decision-making.
Use it to compare scenarios quickly and to understand the trade-offs behind the final result.
Treat the output as a planning number. Small changes in inputs (time, rate, price, quantity, risk, or cashflows) can change the outcome meaningfully — so keep assumptions realistic.
If the tool returns multiple outputs, focus on the ones that drive decisions (e.g., net result, breakeven, or risk-adjusted value), not just the biggest number.
Values: 100000, 105000, 98000, 112000, 108000, 120000, 95000, 125000
Graphical view
Values: 100000, 120000, 150000, 90000, 130000, 160000, 80000, 170000
Graphical view
HOW IT WORKS
Paste your daily balance, monthly NAV, or weekly equity curve values — one per line or comma-separated.
The tool scans all peak-to-trough declines and identifies the maximum drawdown — the biggest fall from any peak to any subsequent low.
Understand the asymmetry of drawdowns: a 30% loss needs a 43% gain just to get back to where you started.
FAQ
Maximum Drawdown (MDD) is the largest peak-to-trough decline in portfolio value before a new peak is achieved. For example, if your portfolio goes from ₹1,00,000 to ₹60,000 before recovering, the max drawdown is 40%. It is the single most important risk metric for evaluating a trading strategy.
There is no universal benchmark — it depends on the strategy and trader's risk tolerance. As a general guide: < 10% = conservative/excellent, 10-20% = moderate, 20-30% = aggressive, > 30% = high risk. Many professional funds target max drawdown below 15-20%.
If you lose 50%, you need a 100% gain to recover. If you lose 25%, you need a 33% gain. This asymmetry happens because the recovery is calculated on a smaller base (the trough value). A 50% loss on ₹1,00,000 leaves ₹50,000 — which needs to double (+100%) to get back to ₹1,00,000.
Total loss is your overall P&L from start to end. Max drawdown specifically measures the worst intra-period decline from any peak. A portfolio can show a net profit yet have experienced a significant max drawdown during the period. Both matter — drawdown tells you about the journey, not just the destination.
Track your drawdown automatically
TradeLyser automatically plots your equity curve and tracks your max drawdown in real time — so you can set limits and stop before a small loss becomes a big one.