Enter a percentage loss to see the gain needed to get back to break-even. It shows why limiting losses matters so much.
The math of losses
Losses and gains are not symmetrical. After a 50 percent loss, you need a 100 percent gain to recover.
Formula
Required gain = loss ÷ (1 minus loss). With a 20 percent loss: 0.20 ÷ 0.80 = 25 percent.
| Loss | Gain needed |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 30% | 42.9% |
| 50% | 100% |
| 75% | 300% |
This is why a fixed risk per trade and a stop at the invalidation level are so important.
Frequently asked questions
How much gain do I need after a 50 percent loss?
100 percent, because you are starting from half the original balance.
What is drawdown?
The fall in account value from a peak to a low before a new peak is reached.
How can I limit drawdown?
Risk a small, fixed share of your account per trade and always use a stop loss.
Results are estimates for education and planning. Check contract specifications and costs with your broker before you trade. Disclaimer.
