Breakeven after a fall
A 50% fall needs a 100% rise to recover. Work it out from prices or from a percentage.
From prices
From a percentage fall
About this calculator
Why recovering a loss takes a bigger gain
A fall and a recovery are measured from different starting points, and that asymmetry is larger than most people expect. If ₹100 falls 50% it becomes ₹50, and getting back to ₹100 from ₹50 is a 100% gain. The percentage you lost is calculated on the original amount; the percentage you need is calculated on what is left.
The arithmetic is rise needed = fall ÷ (100 − fall), as percentages. It stays mild for small falls and turns punishing for large ones: 10% needs 11.1%, 25% needs 33.3%, 50% needs 100%, and 80% needs 400%.
What it means in practice
This is why many investors put limiting large losses ahead of chasing large gains. Avoiding one catastrophic position does more for a portfolio than finding one extra winner, because the recovery maths works against you so steeply at the deep end.
It also explains why a volatile investment can have a positive average return and still lose money. A 50% gain followed by a 50% loss leaves you 25% down, not level.
Common questions
How much do I need to gain to recover a 30% loss?
About 42.9%. Divide the percentage fall by 100 minus the fall: 30 ÷ 70 = 42.9%.
Why is the gain needed bigger than the loss?
Because it is measured from the lower price. After a fall you have less money working for you, so the same number of rupees is a larger percentage of what remains.
Does a 50% gain cancel a 50% loss?
No. A 50% loss needs a 100% gain to break even. Returns multiply rather than add, which is why a 50% gain and a 50% loss in either order leaves you 25% down.