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Maximum Drawdown Calculator

LAST UPDATE: September 1st, 2018

Calculator

What is Maximum Drawdown?

Maximum Drawdown is the loss from peak to trough. It is listed as a percentage.

Formula

Maximum Drawdown = ((Trough Value – Peak Value) / Peak Value) x 100%

Example

An investment has a trough value of $50,000 and peak value of $75,000.

Maximum Drawdown = (($50000 – $75,000) / $75,000) x 100% = (-$25,000 / $75,000) x 100% = -0.333 x 100% = -33.3%

Therefore, this investment has a maximum drawdown of -33.3%.

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