Drawdown Calculator
Analyze your betting bankroll drawdown to understand maximum losses, recovery requirements, and manage risk effectively during losing streaks.
Bankroll Information
Your initial bankroll amount
Your current bankroll amount
Lowest point your bankroll reached
Betting Strategy (Optional)
Your historical win percentage
Drawdown Analysis
Understanding Drawdown in Betting
What is Drawdown?
Drawdown is the decline in your bankroll from its peak value to its lowest point, measured before a new peak is achieved. It's a critical metric for understanding the risk and volatility of your betting strategy.
Why Drawdown Matters
- Helps you understand the worst-case scenarios for your betting strategy
- Prevents emotional decision-making during losing streaks by setting expectations
- Guides proper bankroll sizing to survive inevitable downswings
- Indicates when a strategy may need adjustment or abandonment
Recovery Mathematics
Recovery from drawdown is asymmetric. A 50% drawdown requires a 100% gain to recover. This is why bankroll preservation is crucial - the deeper the drawdown, the harder it becomes to recover.
| Drawdown | Gain Needed to Recover |
|---|---|
| 10% | 11.1% |
| 20% | 25% |
| 30% | 42.9% |
| 50% | 100% |
| 75% | 300% |
Managing Drawdown
- Size bets appropriately: Never bet more than 1-5% per bet
- Set stop-loss limits: Define maximum acceptable drawdown (e.g., 30%)
- Diversify: Spread bets across different sports/markets
- Review strategy: If drawdown exceeds expectations, reassess your approach
- Maintain discipline: Don't increase bet sizes trying to recover losses
Important: Even profitable betting strategies experience drawdowns. The key is ensuring your bankroll can survive expected drawdowns while maintaining proper bet sizing. A 20-30% drawdown is common even for successful bettors.