About the Maximum Drawdown Calculator
Find the maximum drawdown of a trading account, a strategy or any price history: the largest fall from a high before a new high was reached. Paste balances or prices, one per line, or load a CSV export, and see the drawdown, where it started and ended, whether it has been recovered and the gain needed to get back.
Two charts show the values with the peak and trough marked, and the drawdown at every point, the so-called underwater chart.
How it works
The calculation walks through the values keeping track of the highest one so far. At each point the drawdown is the fall from that running high, as a percentage of it. The maximum drawdown is the largest of these.
For example, an account that grows from 100 to 120, falls to 90, rises to 130, falls to 104 and ends at 150 has two drawdowns: 25% (120 to 90) and 20% (130 to 104). The maximum drawdown is 25%, and it was recovered when the balance reached 130.
Recovering needs a larger gain than the loss: after a 25% fall you need 33.3% to get back, after 50% you need 100%. The page shows that gain, and the tests check every result against a brute-force search over every pair of points.
Assumptions and limits
- Values must be in time order, oldest first; dated files listed newest first are reordered automatically.
- Deposits and withdrawals change a balance without being a gain or loss; remove them first or use an equity curve.
- Drawdown is measured from closing values; a low reached during a bar isn't included unless you paste lows.
Worked examples
Two dips
100, 120, 90, 130, 104, 150: the maximum drawdown is 25%, from 120 to 90, recovered at 130.
Not recovered yet
100, 80, 90: the maximum drawdown is 20%. Climbing back from the low of 80 takes a 25% gain; from 90 the account is still 10% below its high.
A later, deeper fall
100, 90, 110, 66: the 40% fall from 110 counts, not the earlier 10%.
How to use the Maximum Drawdown Calculator
- Add your values. Balances after each trade or day, or prices.
- Read the drawdown. With its peak, trough and recovery.
- Check the charts. Values and the drawdown at every point.
Frequently asked questions
How is maximum drawdown calculated?
Go through the values keeping the highest one seen so far. At each point divide the fall from that high by the high itself. The largest of these percentages is the maximum drawdown, and the high and the low it came from are its peak and trough.
What is a good maximum drawdown?
It depends on the returns that come with it and on what you can tolerate. Many traders treat anything beyond 20% as serious, because recovering from it needs a 25% gain, and the needed gain grows quickly for deeper falls.
Why do I need more than 25% to recover from a 25% loss?
The gain is measured from the smaller balance. After falling from 100 to 75, getting back to 100 is a 25 gain on 75, which is 33.3%. The page shows the gain needed for your own drawdown.
Can I use this for my trading account?
Yes. Paste your balance or equity after each trade or each day, oldest first. If you added or withdrew money in that time, take those amounts out first so they aren't counted as gains or losses.
What is an underwater chart?
It shows, for every point, how far the value is below its highest level so far. It sits at 0% at each new high and dips below zero during drawdowns, making their depth and length easy to see.
This tool runs entirely in your browser. What you enter or upload stays on your device and is never sent to our servers.