Gain and Loss Percentage Calculator
The Profit and Loss Percentage Calculator helps you quickly calculate your account’s profit or loss percentage, view the current balance, and see the return required to recover the initial balance or the drawdown percentage you can still afford.
How is the profit and loss percentage calculated?
The profit and loss percentage is usually calculated
based on the initial balance and the current profit or
loss amount. It helps you quickly understand the current
change in your account and the return required to
recover to the initial balance or the drawdown
percentage you can still afford.
Using an initial balance of USD 1,000 as an example:
Profit example
If the profit amount is USD 200, then:
Current balance = Initial balance + Profit amount
1,000 + 200 = USD 1,200
Profit percentage = Profit amount ÷ Initial balance × 100%
200 ÷ 1,000 × 100% = 20%
Based on the current balance of USD 1,200, if the account then incurs a further loss of 16.7%, it will return to the initial balance of USD 1,000.
Loss example
If the loss amount is USD 200, then:
Current balance = Initial balance − Loss amount
1,000 − 200 = USD 800
Loss percentage = Loss amount ÷ Initial balance × 100%
200 ÷ 1,000 × 100% = 20%
To recover from the current balance of USD 800 back to the initial balance of USD 1,000, the required gain is:
Required recovery return = (Initial balance − Current balance) ÷ Current balance × 100%
(1,000 − 800) ÷ 800 × 100% = 25%
Using an initial balance of USD 1,000 as an example:
Profit example
If the profit amount is USD 200, then:
Current balance = Initial balance + Profit amount
1,000 + 200 = USD 1,200
Profit percentage = Profit amount ÷ Initial balance × 100%
200 ÷ 1,000 × 100% = 20%
Based on the current balance of USD 1,200, if the account then incurs a further loss of 16.7%, it will return to the initial balance of USD 1,000.
Loss example
If the loss amount is USD 200, then:
Current balance = Initial balance − Loss amount
1,000 − 200 = USD 800
Loss percentage = Loss amount ÷ Initial balance × 100%
200 ÷ 1,000 × 100% = 20%
To recover from the current balance of USD 800 back to the initial balance of USD 1,000, the required gain is:
Required recovery return = (Initial balance − Current balance) ÷ Current balance × 100%
(1,000 − 800) ÷ 800 × 100% = 25%
Conclusion: Even with the same 20% change, the
acceptable drawdown after a profit is not the same as
the required recovery return after a loss. With the
Profit/Loss Percentage Calculator, you can more
intuitively understand how changes in account profit
and loss affect the return needed to recover your
funds.
