Loss recovery calculator
Large losses need larger gains to recover. Move the slider to see the gain needed to get back to even.
Why it matters
Large losses need larger gains to recover
Simple arithmetic: recovering from a loss of L requires a gain of L divided by (1 minus L). Ignores fees, taxes and contributions or withdrawals.
How it works
After a loss, the remaining amount is smaller, so the same percentage gain earns back less than was lost.
Formula. Gain needed to recover = loss divided by (1 minus loss). For a loss of L percent, the gain needed is L divided by (100 minus L), times 100.
Worked examples. A 10% loss needs about an 11.1% gain; a 20% loss needs 25%; a 33% loss needs about 49%; a 50% loss needs 100%. $100,000 that falls 20% becomes $80,000 and needs $20,000, or 25%, to recover.
Assumptions. Simple arithmetic that ignores fees, taxes, contributions and withdrawals. Withdrawals during a decline make recovery harder.
FAQ
Frequently asked questions
How much do you need to gain to recover from a loss?
Divide the loss by one minus the loss. A 20% loss needs 0.20 divided by 0.80, or 25%.
Why does a 50% loss need a 100% gain?
Half the money is gone, so the remaining half must double to get back to where it started.
Why does this matter for portfolio planning?
Limiting large losses shortens the time needed to recover, which matters most for investors who are withdrawing money or close to a goal.
Does the calculator include fees or withdrawals?
No. It is the arithmetic only. Fees and withdrawals during a decline increase the gain needed.
Learn more
- How Often Do Stocks Fall? What History Says About the Frequency and Size of Losses
- Where Can Buffer ETFs Fit in a Portfolio?
- Buffer ETFs vs. Bonds: Which Fits a Portfolio’s Defensive Sleeve?
- Buffer ETFs Explained
- All ETF calculators and tools
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For educational purposes only. This material is not investment, legal or tax advice, and it is not a recommendation or offer to buy or sell any security. Figures from third-party sources are believed to be reliable as of the dates shown but are not guaranteed. Investments involve risk, including possible loss of principal.