Find the largest peak-to-trough fall in a series of values.
Please do not make financial decisions based on these results.
What is the Maximum Drawdown Calculator?
Find the largest peak-to-trough fall in a series of values. To use the Maximum Drawdown Calculator, enter portfolio values in order; it returns maximum drawdown, peak value, final value, and shows them instantly as you type.
Where the Maximum Drawdown Calculator fits
Find the largest peak-to-trough fall in a series of values. The main figure it returns is the Maximum drawdown, worked out from the values you enter.
It belongs with the other investment tools. If you are comparing options or checking a result from another angle, try the Interest Rate Calculator, Savings Calculator or the Bond Calculator.
How to use the Maximum Drawdown Calculator
- Enter your numbers. Start with Portfolio values in order (comma separated). Use a rate of return you consider realistic; small changes compound into large differences. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Maximum drawdown, and the cards below show Peak value, Final value. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Maximum Drawdown Calculator using the default values shown in the calculator above:
Inputs
| Portfolio values in order (comma separated) | 100, 112, 108, 125, 98, 104, 130, 117 |
|---|
Results
| Maximum drawdown | -21.6% |
|---|---|
| Peak value | 130 |
| Final value | 117 |
With these inputs the calculator returns Maximum drawdown: -21.6%. Change any value in the calculator to see how the result moves.
What the results tell you
The results panel of the Maximum Drawdown Calculator reports Maximum drawdown, peak value and final value. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Investment returns are not guaranteed. The result shows what the numbers you enter would produce, not what the market will do. It is for information, not financial, tax or legal advice.
Frequently asked questions
Why does drawdown matter?
It shows the worst loss an investor would have lived through, which Sharpe ratios hide.
What rate of return should I assume?
There is no guaranteed rate. Test a range of conservative and optimistic rates, and remember that fees and inflation reduce your real return.
Are investment returns guaranteed?
No. Real returns vary. Use these tools to compare scenarios, not to predict results.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
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