Peak valueHigh modeled impact
Higher input raises the modeled result
The peak is the denominator used to measure the decline.
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Investment Drawdown Calculator
Calculate investment drawdown from an entered prior peak, including dollar decline, percentage drawdown, value remaining, and the recovery hurdle.
Your result
Investment drawdown
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Dollar decline—
Value remaining—
Through the Lens
What drives this result?
Controlled, deterministic sensitivity around your current inputs reveals which assumptions move the investment drawdown most.
Current valueHigh modeled impact
Higher input lowers the modeled result
The current value determines how much of the peak remains.
High modeled impact means an input changes this output substantially around the current scenario. Rankings compare controlled 10% input changes; they do not measure risk, probability, personal importance, controllability, suitability, advice, or forecasts.
Meaning
What this means
Meaning
Drawdown expresses a decline from peak value. It helps compare losses across portfolios of different sizes and frames the recovery challenge that follows.
Implication
The percentage frames the depth of the decline, while the dollar loss shows its scale. A deeper drawdown also creates a larger recovery hurdle because the remaining balance is smaller.
Formula and methodology
How the calculator works
Dollar decline
max(peak value − current value, 0)Drawdown
dollar decline ÷ peak value × 100Value remaining
current value ÷ peak value × 100Values at or above the entered peak produce a 0% drawdown. Displayed money is rounded to whole currency units and percentages to two decimals; the engine calculates with unrounded numbers.
Understanding the result
What is investment drawdown?
How to calculate drawdown
Investment or portfolio drawdown is the decline from a prior peak. Subtract the current value from the entered peak, then divide the decline by that peak. The calculator uses two values you supply; it does not search a price history.
For example, a portfolio falling from $100,000 to $75,000 has a 25% drawdown. Its dollar decline is $25,000 and 75% of the peak value remains.
Drawdown, maximum drawdown, and recovery
Current drawdown compares a current value with a chosen prior peak. Historical maximum drawdown is the largest peak-to-trough decline found by checking a series of values over time; this two-value calculator does not perform that time-series analysis.
Returning from $75,000 to $100,000 requires a 33.33% gain on the smaller $75,000 base. Drawdown and the percentage required to recover are different measurements.
Assumptions and limitations
What the scenario includes—and leaves out
Assumptions
- The peak and current values refer to the same portfolio and currency.
- Deposits and withdrawals between the two values are not adjusted for.
- The entered peak is the relevant comparison point.
Limitations
- Taxes, fees, inflation, cash flows, and time elapsed are excluded.
- Drawdown describes a past or entered change; it does not estimate recovery timing.
- No market prices or other live data are fetched.
Educational scenario only. Results are modeled estimates, not forecasts or personalized financial, investment, legal, or tax advice.
Known-answer checks
Examples used to validate the engine
25% declineA peak of 100 and current value of 75 returns a 25% drawdown and 75% remaining.
No declineA current value equal to or above the peak returns a 0% drawdown.
Complete declineA current value of 0 returns a 100% drawdown.
Invalid peakA zero, negative, or non-finite peak is rejected.
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