Portfolio Drawdown

Stress test your portfolio against 20, 30, and 40 percent drops to see if you can stomach the downside.

Your Portfolio

Portfolio Value ($)

Annual Income Need ($)

Emergency Fund ($)

Equity Allocation 80%

Mild Drop

−20%

—

Moderate Drop

−30%

—

Severe Drop

−40%

—

Portfolio Value — Before, During, and After Each Drop

Historical Event

Drawdown

Recovery

Dot-Com Crash (2000)

−49%

~7 years

Financial Crisis (2008)

−57%

~5 years

COVID Crash (2020)

−34%

~5 months

Bear Market (2022)

−25%

~18 months

A severe 40% drop would cut your portfolio to —, losing —. With your — emergency fund, you'd have — of living expenses covered before needing to sell during the downturn.

Portfolio Drawdown Calculator

Every investor thinks they can handle a market crash until they actually experience one. Our Portfolio Drawdown Calculator stress tests your specific portfolio against the three most common historical drawdown levels: a 20 percent correction, a 30 percent bear market, and a 40 percent severe drop. Enter your portfolio value, equity allocation, annual income need, and emergency fund balance, and the calculator shows exactly what your portfolio would look like under each scenario. It correctly applies the drop only to your equity holdings while leaving bonds and cash intact, and it calculates how many months of living expenses your emergency fund covers during a downturn. A historical reference table shows actual drawdowns from the dot-com crash, 2008 financial crisis, COVID crash, and 2022 bear market alongside their recovery times. Running this stress test before a crash is the difference between staying the course and panic selling at the worst possible moment.