Question 1

How much gain do I need to recover from a loss?

Accepted Answer

Required gain = loss ÷ (1 − loss). A 20% loss needs a 25% gain, a 50% loss needs a 100% gain, a 75% loss needs a 300% gain, and a 90% loss needs a 900% gain. The gain is always larger than the loss because it's measured from a smaller remaining base.

Question 2

Why isn't a 50% gain enough to recover a 50% loss?

Accepted Answer

Because the gain applies to what's left. After a 50% loss on $10,000 you have $5,000; a 50% gain on $5,000 is only $2,500, leaving $7,500. You need a 100% gain on the $5,000 to get back to $10,000.

Question 3

Why is recovery harder for leveraged ETFs?

Accepted Answer

A 2x or 3x ETF moves a multiple of the benchmark each day, so it can fall into deep drawdowns much faster than the index. Deeper drawdowns require disproportionately larger gains to break even, which is why leverage can make recovery especially difficult.

Question 4

Does this account for volatility decay too?

Accepted Answer

This calculator focuses on the pure break-even math for a given loss. Volatility decay from daily reset is a separate effect — explore it in the leveraged ETF decay calculator and the 2x vs 3x simulator to see how losses can build up in the first place.

Question 5

Is the recovery math the same for any investment?

Accepted Answer

Yes, the break-even formula applies to any investment, leveraged or not. Leverage simply makes large losses — and therefore large required recoveries — more likely over short periods.

Leveraged ETF Recovery Calculator

Break-Even Recovery Calculator

Recovery math for common losses

Frequently asked questions