Free online Max Drawdown Calculator. Calculate maximum drawdown rate and amount for portfolios or assets. Multi-period data input, automatic max drawdown analysis. No registration required.
Max Drawdown = (Peak - Trough) / Peak × 100%. It measures the largest peak-to-trough decline during an investment period.
For each peak, find the subsequent lowest point, calculate drawdown rate, take the maximum. E.g. NAV drops from 100 to 70, drawdown is 30%.
It reflects the maximum potential loss of an investment and is a core risk metric. Higher drawdown means higher risk. Often used with Sharpe Ratio.
Diversify investments, set stop-loss orders, rebalance asset allocation, use hedging strategies. Past drawdown does not guarantee future results.