Portfolio Drawdown Simulator

Convert market fear into math. Visualize the path to recovery and the impact of staying the course.

Coach Mode

Decision Inputs

Current Portfolio Value ($)

Monthly Contribution ($)

Annual Return (%)

Drawdown Scenario

"Time in the market beats timing the market."

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Analysis Result

Market volatility is inevitable. Math is your anchor. Enter your data and click "Simulate Recovery" to see the timeline.

Risks & Limitations

Market returns are not linear. This tool uses a constant average return assumption which does not reflect actual sequence of returns risk.
Inflation is not factored into this nominal recovery simulation.
Panic selling or changing strategy mid-drawdown is not modeled here but is the #1 reason investors fail to recover.

Drawdown: The peak-to-trough decline during a specific period for an investment, trading account, or fund.
Time to Recovery: The amount of time it takes for an investment to return to its previous peak value after a drawdown.
Mathematical Asymmetry: The principle that percentage gains and losses are not equal. A 20% loss requires a 25% gain to recover.

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Risks & Limitations

Market returns are not linear. This tool uses a constant average return assumption which does not reflect actual sequence of returns risk.

Inflation is not factored into this nominal recovery simulation.

Panic selling or changing strategy mid-drawdown is not modeled here but is the #1 reason investors fail to recover.

Key Definitions

Drawdown

The peak-to-trough decline during a specific period for an investment, trading account, or fund.

Time to Recovery

The amount of time it takes for an investment to return to its previous peak value after a drawdown.

Mathematical Asymmetry

The principle that percentage gains and losses are not equal. A 20% loss requires a 25% gain to recover.