How much do I need to gain to recover a 30% loss?

About 42.9%, because 30 / (100 - 30) = 0.4286.

Blog / Risk

Drawdown Recovery Math: Why a 50% Loss Needs a 100% Gain

The simple formula for how much you must gain to recover a loss, a table from 10% to 90% drawdown, and what it means for risk per trade and prop firm limits.

Losses and gains are not symmetric

If you lose 50% of an account, you do not need a 50% gain to get back to even. You need 100%, because the gain applies to a smaller balance. A $10,000 account that falls 50% is $5,000. To return to $10,000 it has to double.

The formula is: required gain = loss / (100 - loss), as percentages. A 20% loss needs 20 / 80 = 25%.

The table

10% loss needs 11.1%. 20% needs 25%. 30% needs 42.9%. 40% needs 66.7%. 50% needs 100%. 60% needs 150%. 70% needs 233%. 80% needs 400%. 90% needs 900%. The numbers rise slowly at first and then explode, which is why big drawdowns are so hard to recover from.

What it means for risk per trade

Risking 1% per trade, ten losing trades in a row (which happens) leaves you about 9.6% down, because each loss is 1% of a shrinking balance. You need about 10.6% to recover. Risking 5% per trade, ten losses leaves you about 40% down and you need about 67% to recover. Small risk keeps recovery realistic.

What it means for prop firm limits

A 10% max loss limit means the account ends before you reach the painful part of the curve, but it also means you cannot afford a long losing streak. If a firm gives you a 5% daily loss limit and you risk 1% per trade, five consecutive full losses in one day would end the day, so most traders stop far earlier, at about 1.5% to 2%.

Use it as a rule

Set a personal drawdown level, such as 10%, at which you stop trading and review. The math shows that the deeper the hole, the less likely the account recovers with the same strategy. The free drawdown recovery calculator on this site gives the number for any loss.

Key takeaways

Required gain = loss / (100 - loss).
50% down needs 100% up; 90% down needs 900%.
Small risk per trade keeps recovery realistic.
Set a personal stop-and-review drawdown level.

FAQ

How much do I need to gain to recover a 30% loss? About 42.9%, because 30 / (100 - 30) = 0.4286.

Educational content, not financial advice.