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Maximum Drawdown Calculator

Find the worst peak-to-trough loss in any price or account history. Paste your values and see the maximum drawdown, when the peak and the bottom happened, how long it took to recover, and every other big drawdown along the way.

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Price or account values

Use closing prices, fund NAVs or account balances. "Date, value" lines, spreadsheet columns or a CSV with a header row all work. Oldest or newest first.

Chart

Largest drawdowns

How it was calculated

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    How to use the Maximum Drawdown Calculator

    1. Paste prices or account values, one per line, ideally with a date before each value.
    2. Pick the value column if your data has several (Auto chooses Adj Close, Close, Price or Value from the header).
    3. Read the maximum drawdown and the peak, trough and recovery dates in the summary.
    4. Switch to the underwater chart to see how deep and how long every decline was.
    5. Review the ranked drawdowns table and download the CSV for your own spreadsheet.

    Drawdown formulas

    • Running peak: Peakt = max(V1, V2, …, Vt)
    • Drawdown: DDt = Vt ÷ Peakt − 1 (zero at a new high, negative below it)
    • Maximum drawdown: MDD = min(DDt) over the whole period
    • Gain to recover = 1 ÷ (1 + MDD) − 1
    • Calmar ratio = CAGR ÷ |MDD|  ·  Ulcer index = √( Σ (DDt × 100)² ÷ n )

    Loss vs. gain needed to break even

    DrawdownGain needed to recoverYears to recover at 7% a year
    −10%+11.1%1.6
    −20%+25.0%3.3
    −30%+42.9%5.3
    −40%+66.7%7.6
    −50%+100.0%10.2
    −60%+150.0%13.5
    −75%+300.0%20.5

    Years to recover = ln(1 + gain needed) ÷ ln(1.07), assuming a steady 7% annual return after the trough.

    Using drawdown in practice

    • Stress-test your plan. Ask whether you could have held on through the maximum drawdown without selling. If not, the strategy may be too risky for you.
    • Look at duration, not only depth. A −25% drop that recovers in six months feels very different from one that stays underwater for five years.
    • Use long histories. A short window that misses a bear market understates the real risk.
    • Combine measures. Volatility shows typical swings, maximum drawdown shows the worst case, and the Sharpe ratio relates return to risk.

    Frequently asked questions

    What is maximum drawdown?

    Maximum drawdown (MDD) is the largest percentage drop from a peak to a later low before a new peak is reached. It shows the worst loss an investor would have suffered by buying at the top and selling at the bottom during the period you analyze.

    How do you calculate max drawdown?

    Track the highest value reached so far (the running peak). For every period, divide the current value by that running peak and subtract 1 to get the drawdown. The most negative of those numbers is the maximum drawdown. For example, a peak of 120 followed by a low of 84 is 84 ÷ 120 − 1 = −30%.

    Why does a 50% loss need a 100% gain to recover?

    After a loss the base is smaller, so the same percentage gain adds back less money. The gain needed to recover is 1 ÷ (1 − loss) − 1: a 20% drawdown needs +25%, a 33% drawdown needs +50% and a 50% drawdown needs +100%.

    What is recovery time?

    Recovery time is how long it took after the trough for the value to climb back to the previous peak. The calculator shows it in periods (rows) and, when dates are included, calendar days. If the value has not regained its peak by the end of your data, the drawdown is marked as not yet recovered.

    What is the Calmar ratio?

    The Calmar ratio divides the compound annual growth rate (CAGR) by the absolute maximum drawdown. A higher number means more return for each unit of worst-case loss. It is traditionally measured over 36 months, but here it uses the whole period you paste.

    What is the Ulcer index?

    The Ulcer index is the square root of the average squared drawdown in percent. Unlike the maximum drawdown, it accounts for how deep and how long all declines were, so a portfolio that stays underwater for a long time scores worse.

    Does the data frequency change the result?

    Yes. Daily data catches intraday-to-day lows that monthly closing prices miss, so daily data usually shows a deeper maximum drawdown than monthly data for the same investment. Compare investments using the same frequency.

    Are all the tools on FreeToolCabin tested for quality and accuracy?

    Yes! Every tool on our site undergoes automated Q/A testing in real browser environments to ensure high precision, correct output, and zero errors. If you happen to spot a bug or have a suggestion, please contact us at [email protected] and our team will review it right away.

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