Loss Recovery Calculator (Gain Needed After a Loss)
The percentage gain needed to get back to where you started after a loss, and how many years that takes at a given return.
Results
Gain needed to get back to the start
42.86
%
Years to recover at that return
5.27
a
The dashed line marks the value you entered.
What this tool does
Losses and gains are not symmetrical: a 50 % fall needs a 100 % rise to get back, a 30 % fall needs 43 %, and a 90 % fall needs 900 %. The reason is that the recovery works on a smaller base. This is why limiting large drawdowns matters so much for long-term growth, and why 'it's only down 50 %, it will bounce back' is not as reassuring as it sounds. The years assume a steady return, which real markets never deliver.
Formula
gain needed = 1 ÷ (1 − loss) − 1 · years = ln(1 ÷ (1 − loss)) ÷ ln(1 + r)
Variables
| Symbol | Meaning | Unit |
|---|---|---|
lo | Loss | % |
r | Return per year from now on | % |
G | Gain needed to get back to the start | % |
Y | Years to recover at that return | a |
Worked example
- Loss30 %
- Return per year from now on7 %
- Gain needed to get back to the start42.86 %
- Years to recover at that return5.27 a
Limitations
- This is an informational calculator, not personalised financial advice. Rates, fees, taxes and contract conditions vary between institutions and countries.
- The result is an estimate based only on the values you type. Real situations often include factors this calculator does not know about.