Understanding Stock Loss Recovery Math
After a stock loss, you need to earn back more than you lost — because you're working with a smaller base. A 25% loss requires a 33% gain; a 50% loss requires 100%. This asymmetry is why managing drawdowns matters so much in long-term investing.
This calculator simulates month-by-month compound growth (plus monthly contributions if entered) until your portfolio reaches its original value. Required recovery return = loss / (1 − loss rate) × 100.
The most important variable is the return rate you can realistically achieve after the loss. Consistent 7–8% from a diversified index fund may recover faster with less additional risk than chasing higher returns in volatile single stocks.
Frequently Asked Questions
No, this calculator shows a gross recovery timeline. Tax-loss harvesting can reduce your tax bill in the year of the loss, effectively making the after-tax shortfall smaller and speeding up real recovery.
Enter 0 for monthly contributions. The calculator will show how long compound growth alone takes to recover the original amount at your expected return rate.