XIRR Auditor
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A portfolio loss and the gain needed to recover are not symmetrical. A 50% loss requires a 100% gain. Enter your drawdown and expected recovery rate to see how long the road back takes.

Quick loss scenarios

Drawdown details
%

Enter as a positive number (e.g. 30 for a 30% drop)

%

Annual return you expect going forward

The loss-recovery asymmetry

Portfolio losses and the gains needed to recover are not equal. A 50% loss leaves you with 50¢ on the dollar — to return to $1 you need a 100% gain on what remains. This asymmetry grows sharply with loss size.

LossGain to recoverAt 10%/yr
10%11.1%~1.1 yr
20%25%~2.6 yr
30%42.9%~3.7 yr
50%100%~7.3 yr
70%233%~12.6 yr

Why this matters for portfolio construction

Compounding interruptedEvery year spent recovering is a year not compounding toward new highs.
Volatility dragHigh volatility reduces long-run geometric returns even when arithmetic returns look similar.
Risk toleranceKnowing recovery times concretely helps calibrate how much drawdown you can actually stomach.
Hedge sizingThe math explains why a 5% portfolio hedge against a 50% crash can save years of recovery.

Frequently asked questions

Why is the required gain larger than the loss?

Because you calculate the required gain on what remains after the loss, not on the original amount. −50% leaves you $500 from $1,000 — and a 100% gain on $500 gets you back to $1,000.

Does this assume I stop investing during recovery?

Yes — this calculator models a static lump sum recovering at a constant rate. If you continue contributing (DCA) through the drawdown, your actual recovery could be faster.

How does this relate to my XIRR?

XIRR captures exactly this effect: a large deposit made just before a crash drags your money-weighted return far below the market's time-weighted return. Upload your brokerage export to see the actual impact on your XIRR.

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