Maximum Drawdown Calculator
Enter the peak value and the lowest value that followed to measure the largest drop from a high point.
- Free
- No sign-up
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
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.