Free · General investment calculators 🤑

Peak Loss & Compound Recovery Calculator

Measure a decline from a chosen peak and the constant growth needed to recover.

  • Formula & worked example
  • Private in your browser
  • No signup
Go to tool

Calculator inputs

Loading calculator…

How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Edit a calculated value to solve backwards, or lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

A decline from 100 to 64 is a drawdown of −36%. Returning from 64 to 100 over two years requires a constant annual growth rate of 25%.

Drawdown = trough ÷ peak − 1; recovery rate = (peak ÷ trough)^(1 ÷ years) − 1

Worked example

Enter these known values and leave the other values blank.

Peak value
100 USD
Lowest value after peak
64 USD
Time needed for recovery
2 yrs
Maximum drawdown
-36 %
Annual growth rate
25 %

Assumptions and limitations

  • No. Enter the peak and a later trough for the period you want to measure. The calculator does not scan historical prices. Recovery assumes a constant compounded rate without deposits, withdrawals, fees or taxes.
  • Use consistent periods, rates and accounting definitions. These calculations describe the entered assumptions.

Common questions

Does this locate the largest drawdown in a price series?

No. Enter the peak and a later trough for the period you want to measure. The calculator does not scan historical prices. Recovery assumes a constant compounded rate without deposits, withdrawals, fees or taxes.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

Explore general investment calculators 🤑 or browse all finance calculators.