How to use this calculator
- For a snapshot, enter a positive peak and current equity at or below that peak.
- For historical maximum drawdown, switch modes and paste equity observations in chronological order, including the starting value.
- Use consistent observations in one currency. This simple series model does not adjust for deposits or withdrawals; remove cash-flow effects before using it.
Formula and worked example
Drawdown (%) = (prior peak − equity) ÷ prior peak × 100. Recovery gain (%) = (prior peak − equity) ÷ equity × 100. Historical maximum drawdown is the largest percentage decline from a preceding peak.
A decline from 10,000 to 8,000 is a 20% drawdown. Regaining 10,000 requires a 25% gain on the remaining 8,000. In the series 10,000 → 11,000 → 8,800 → 10,500 → 12,000, maximum drawdown is also 20%, even though the series ends at a new high.
What the result does—and does not—tell you
Maximum drawdown is path-dependent: the lowest value must follow the peak used to measure it. The tool scans each observation against its running peak rather than subtracting the global minimum from the global maximum. Equity includes open-position gains and losses, while a closed-trade balance series can miss them. Daily samples can also miss a larger intraday decline. This is a historical measurement, not a prop-firm rule engine.
Frequently asked questions
Why is the recovery percentage larger than the drawdown?
The decline is measured against the larger starting peak. The recovery is measured against the smaller remaining equity. A 50% decline therefore needs a 100% gain to return to the peak.
What happens at zero equity?
A 100% drawdown leaves no positive base on which to earn a recovery percentage. The tool reports no finite recovery rate. Negative equity is outside this calculator’s model.
Can I paste a CSV?
You can paste a single numeric column without its header, or a comma-separated numeric list. Full broker CSV files containing dates and other columns must be reduced to chronological equity values first. No file is uploaded.
Methodology and limitations
WTE Toolbox · Calculation model v1 · Updated September 6, 2026. These are deterministic calculations from manually supplied inputs. Examples are hypothetical, not recommended trades or risk limits. No market feed, account connection, or broker validation is used. Display values are rounded; calculations use unrounded intermediate values.
Educational use only, not personalized financial advice. Trading can result in substantial losses. A calculated stop loss is not a guaranteed execution price or maximum loss.
Further reading: QuantConnect’s glossary of trading metrics. This calculator measures the largest percentage peak-to-trough decline in the observations you enter.