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Portfolio Drawdown Calculator

Measure maximum and current drawdown from a series of portfolio values or NAVs.

Portfolio Drawdown Calculator

Compute maximum drawdown and current drawdown from a value or NAV series.

Related Calculators

Risk and performance

Value at Risk (VaR)

Loss threshold at a confidence level.

Conditional VaR (CVaR)

Average loss beyond VaR.

Volatility (Std Dev)

Dispersion of returns.

Information Ratio

Excess return per unit tracking error.

Guide

Drawdown measures peak‑to‑trough loss; a key downside risk metric.

Use consistent periodic values (daily/weekly/monthly NAV or equity curve).
Max drawdown says nothing about duration—consider time to recovery too.
Pair with volatility and CVaR to capture different risk aspects.

Frequently Asked Questions

Drawdown methodology and interpretation

What is maximum drawdown (MDD)?

The worst peak‑to‑trough decline in the series, expressed as a percentage of the peak.

How is current drawdown different?

It is the drawdown from the latest value to the most recent peak.

Does MDD depend on frequency?

Yes—daily series usually show deeper MDD than monthly because they capture intraperiod volatility.

How to compare two strategies?

Normalize by the same sampling and lookback period; compare both MDD and recovery time.

Can MDD be reduced without lowering return?

Diversification, tactical hedges, and risk parity sizing can reduce drawdowns at similar expected returns.

What about path dependency?

Two series with the same mean/volatility can have very different drawdowns; order of returns matters.

Is there a standard "good" MDD?

It is strategy‑dependent. For example, many balanced portfolios target MDD under 25% historically.

How often should I monitor drawdowns?

Continuously for risk management; at least monthly in reporting.

What's the difference between drawdown and VaR?

VaR is a probabilistic loss threshold; drawdown is realized peak‑to‑trough loss over time.

Do transaction costs affect drawdowns?

Yes, especially for active strategies; costs drag performance and can deepen drawdowns.

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Portfolio Drawdown Calculator

Measure maximum and current drawdown from a series of portfolio values or NAVs.

How to use Portfolio Drawdown Calculator

Step-by-step guide to using the Portfolio Drawdown Calculator:

Enter your values. Input the required values in the calculator form
Calculate. The calculator will automatically compute and display your results
Review results. Review the calculated results and any additional information provided

Frequently asked questions

How do I use the Portfolio Drawdown Calculator?

Simply enter your values in the input fields and the calculator will automatically compute the results. The Portfolio Drawdown Calculator is designed to be user-friendly and provide instant calculations.

Is the Portfolio Drawdown Calculator free to use?

Yes, the Portfolio Drawdown Calculator is completely free to use. No registration or payment is required.

Can I use this calculator on mobile devices?

Yes, the Portfolio Drawdown Calculator is fully responsive and works perfectly on mobile phones, tablets, and desktop computers.

Are the results from Portfolio Drawdown Calculator accurate?

Yes, our calculators use standard formulas and are regularly tested for accuracy. However, results should be used for informational purposes and not as a substitute for professional advice.