See what gain is needed to recover a loss

Loss recovery percentage

Calculate the percentage gain needed to fully recover a percentage loss and get back to the original value.

Formula

required increase = decline % ÷ (1 − decline %)

Assumptions

• Assumes recovery back to exactly the original starting value — does not account for time value of money, fees, or taxes along the way.

Frequently asked questions

Why is the gain needed always bigger than the original loss percentage?
Because the gain is calculated on a smaller starting amount. If RM100 drops 20% to RM80, you need a 25% gain on that RM80 (not another 20%) to get back to RM100 — the bigger the loss, the more disproportionately larger the required recovery gain becomes.

What happens as the loss approaches 100%?
The required recovery gain grows toward infinity — a 90% loss needs a 900% gain to recover, and a 99% loss needs a 9,900% gain, which is why avoiding large losses matters far more than chasing large gains.