Calculator guide
Why does a stock loss need more gain to break even?
Enter a loss percentage directly or calculate it from purchase price, current price, and quantity. Recovery percentage equals loss percentage divided by 100% minus the loss percentage, so the break-even gain is larger than the loss itself.
Recovery return
A 50% investment loss does not recover with a 50% gain. The remaining capital must double, so the break-even gain is 100%.
Recovery duration
The same stock loss can require very different recovery periods at 0.5%, 1.0%, or 1.5% daily return.
Risk context
The deeper the drawdown, the faster the required break-even return rises. This helps explain why loss control matters.
How do purchase price and current price determine the loss?
Cost basis is purchase price × quantity, and current value is current price × quantity. The loss percentage is (purchase price - current price) ÷ purchase price × 100; quantity determines the money loss and position value.
If current price is at or above purchase price, the calculator shows no loss to recover. Enter your actual average purchase price because FX, fees, taxes, and later purchases are not added automatically.
Why does a stock loss need a larger gain?
If a 1,000,000 investment loses 50%, only 500,000 remains. A 50% gain from 500,000 reaches 750,000, not the original capital. To break even at 1,000,000, the remaining 500,000 must rise by 100%.
As the stock or investment loss gets deeper, the remaining base gets smaller, so the required recovery return rises faster. A 10% loss needs about 11.11% to break even, while an 80% loss needs 400%.
How is recovery duration calculated?
The calculator assumes the capital left after the loss grows by the same daily return until it reaches the original principal. This is useful for comparing the burden of different drawdowns or stock losses.
Comparing several daily returns makes the sensitivity visible. Even a small daily return difference can become a large difference in recovery duration.
How should you use the result?
The result is based on a simplified assumption that the same gain repeats every day after the loss. Real investing can include further losses, volatility, fees, taxes, and liquidity limits.
This calculator is not a promise that a loss can be recovered. It is a way to see why large losses are difficult to repair.