Loss and recovery calculator
See the gain it would take to make back a loss, and how long a steady yearly return would take to get there.
The result
After a 20% loss, the investment would need a gain of 25.00% to get back to where it started.
At 7% a year, that would take about 3.3 years.
How it is worked out
G = L ÷ (1 − L); T = ln[1 ÷ (1 − L)] ÷ ln(1 + r)
- G
- the gain needed, as a decimal
- L
- the loss as a decimal (20% is 0.2)
- T
- the years to recover
- r
- the yearly rate as a decimal
- ln
- the natural logarithm
A loss is a share of a larger amount than the gain that follows it, so the gain needed is always bigger than the loss.
Illustration, not a forecast. Not investment advice.