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Maximum Drawdown Calculator

Paste an equity series to find the largest peak-to-trough fall and the recovery factor of the run.

Quick answer: Maximum drawdown is the deepest peak-to-trough decline an equity curve suffers, measured as a percentage of the peak. The tool walks your equity series, tracks the running high-water mark, and records the largest percentage fall below it. It also reports the recovery factor, the net profit divided by the rupee size of that worst drawdown, and draws the curve with the drawdown period marked.

Equity series (comma or space separated)

How to use it

Paste the value of your account or backtest equity at successive points in time, separated by commas, spaces or new lines. The output is the maximum drawdown as a percentage of the peak, the rupee depth of that drawdown, the net profit, and the recovery factor (net profit divided by the worst drawdown). The chart shows the equity curve with the peak-to-trough fall highlighted.

Formula

Max drawdown% = max over t of ( Peak so far − Equity[t] ) ÷ Peak so far × 100 ; Recovery factor = Net profit ÷ Max drawdown (₹)

Peak so far is the highest equity value seen up to and including point t. Net profit is the last value minus the first.

Frequently asked questions

Why measure drawdown from the peak, not the start?

Drawdown captures the worst experience of holding the strategy, which is the fall from the highest point reached, not from where you began. A strategy can be up overall yet still have punished you with a deep mid-course decline.

What is the recovery factor?

It is net profit divided by the maximum drawdown in rupees. A recovery factor of three means the strategy made three times its worst dip, a rough measure of reward earned per unit of pain endured.

Is a smaller maximum drawdown always better?

Usually a shallower drawdown is easier to live with, but a suspiciously small drawdown in a backtest can signal overfitting or too short a sample. Judge it against the length and realism of the test.

Does drawdown tell me how long recovery takes?

Not directly. Depth and duration are different. A shallow drawdown can still last a long time, which is often harder to sit through than a deep but quick one. Consider both.

What data should I paste?

A time-ordered series of equity values, such as end-of-day account value or backtest equity. The points should be in chronological order; the tool treats each value as one step after the last.

Runs entirely in your browser — no data leaves your device. Illustrative and educational only; real-world charges and market conditions apply in practice.