Forex Drawdown Calculator – Measure Trading Risk & Maximum Drawdown

This forex drawdown calculator helps traders accurately measure how consecutive losing trades affect account equity, capital preservation, and overall trading risk.

By adjusting the risk percentage per trade and number of consecutive losses, traders can simulate worst-case scenarios and ensure their risk management strategy is sustainable over the long term.

What Is Drawdown in Forex Trading?

In forex trading, drawdown refers to the decline of account equity from a peak to a trough during a sequence of losing trades. It is one of the most important risk metrics used by traders to evaluate account survival and long-term performance.

Large drawdowns significantly increase psychological stress and make recovery more difficult, which is why professional traders focus on controlling drawdown rather than chasing profits.

How to Use the Forex Drawdown Calculator

Starting balance: Your trading account’s initial equity.

Consecutive losses: Simulate a streak of losing trades.

Loss % per trade: The percentage of equity risked on each trade. Most professional traders risk no more than 1–2% per trade.

Click Calculate to see your ending balance and total drawdown.

How to Interpret Forex Drawdown Results

• 0–10% drawdown: Low risk, suitable for conservative strategies.
• 10–20% drawdown: Acceptable for many swing and position traders.
• 20–30% drawdown: Dangerous zone requiring strict risk control.
• 30%+ drawdown: Account survival at serious risk.

Drawdown Recovery: How Much Profit Is Needed to Recover?

A common mistake is assuming recovery is linear. A 20% drawdown does not require a 20% profit to recover—it requires a 25% gain just to break even.

As drawdown increases, the required recovery percentage grows exponentially, which is why capital preservation is the foundation of professional forex trading.