How to calculate loss recovery
Divide the loss percentage by the percentage of the investment that remains, then multiply by 100. If a loss is expressed as a decimal L, the required gain is L ÷ (1 − L).
A 40% loss leaves 60% of the starting value. The required recovery is 40 ÷ 60 × 100 = 66.67%. This formula measures the gain on the remaining investment, not on the original amount.
Loss recovery table
These examples start with a hypothetical $10,000 investment. The recovery percentage is the same for any starting amount or currency.
| Loss | Value remaining | Gain to break even |
|---|---|---|
| 10% | $9,000 | 11.11% |
| 20% | $8,000 | 25.00% |
| 30% | $7,000 | 42.86% |
| 40% | $6,000 | 66.67% |
| 50% | $5,000 | 100.00% |
| 60% | $4,000 | 150.00% |
| 80% | $2,000 | 400.00% |
| 90% | $1,000 | 900.00% |
| 100% | $0 | Not recoverable from zero |
Why losses and gains are not symmetrical
A $10,000 investment falling 50% leaves $5,000. A subsequent 50% gain adds only $2,500, taking the value to $7,500. The gain is calculated on the smaller balance. A 100% gain on $5,000 adds the full $5,000 needed to return to $10,000.
As losses approach 100%, the recovery percentage grows sharply. At a total loss there is no remaining value to grow. Adding new money changes the calculation; it is not a gain on the lost position.
Frequently asked questions
What gain do I need after a 20% loss?
A 25% gain on the remaining investment. For example, 100 falls to 80, and 80 × 1.25 returns to 100.
How long will recovery take?
This calculator cannot predict timing or returns. It measures the percentage change needed, not whether the investment will achieve it.
Does this include fees, inflation, or taxes?
No. It calculates a nominal break-even value without cash flows, fees, taxes, dividends, or inflation. Those factors can change your actual result.
Published by investor.wtf. Read the formulas, assumptions, and how these pages are made.