Rallys Equities
Pakistan Stock Exchange
Measure the decline from peak to trough and what it takes to recover.
Drawdown is the decline in the value of an investment from its peak to its lowest point before a new peak is achieved. Use it to measure portfolio risk, compare volatility, and determine recovery requirements.
Drawdown (%) = (Peak Value − Trough Value) ÷ Peak Value × 100
Disclaimer: This calculator provides estimates only and does not account for fees, taxes, exit loads, or expense ratios. Actual returns vary due to market conditions.
Drawdown refers to the decline in the value of an investment from its peak to its lowest point before a new peak is achieved. It measures the downside risk or potential loss an investor might experience during a specific period. Drawdown is commonly expressed as a percentage and is an important indicator of volatility and investment risk.
For example, if your portfolio value peaks at PKR 100,000 and later falls to PKR 80,000, the drawdown is 20%. This helps investors understand how much value their investment lost during a downturn.
Monitoring drawdown helps investors assess how resilient their portfolio is during market corrections. A smaller drawdown means the investment is less volatile and recovers faster from losses, while a larger drawdown indicates higher risk and potential stress for the investor.
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Use the Rallys Equities Drawdown Calculator to analyze the decline from peak to trough in your investments, understand your portfolio's resilience, and manage risk more effectively.