choose investing logo

Maximum Drawdown Calculator

Quantify investment risk with ease using our Maximum Drawdown Calculator. Measure the largest loss from peak to trough, empowering informed decision-making. Try now!




Result Maximum Drawdown 0%

Related Calculators: Sortino Ratio , Treynor Ratio, Jensens Alpha, Information Ratio

Maximum Drawdown Formula

The maximum drawdown is calculated using the following formula: 

                Maximum Drawdown = (Peak Value - Trough Value) / Peak Value

Where:

  • Peak Value: The highest value reached by the investment or portfolio.
  • Trough Value: The lowest value reached by the investment or portfolio.

The result represents the maximum loss as a percentage of the peak value.

More Articles