General investing

Maximum Drawdown Calculator

Enter the peak value and the lowest value that followed to measure the largest drop from a high point.

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Peak & trough value

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Enter the peak value and the trough value to see the maximum drawdown.

Worked example

With these example inputs:

  • Peak value$100,000
  • Trough value$60,000

Maximum drawdown: -40.0%

  • Decline-40,000

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Frequently asked questions

How is maximum drawdown calculated?

Subtract the trough value from the peak value and divide by the peak. A fall from $100,000 to $60,000 is a 40% maximum drawdown.

Why does maximum drawdown matter?

It shows the worst loss an investor would have suffered buying at the high and holding to the low. A large drawdown signals how much pain a strategy can inflict before recovering.