How to calculate the percentage gain needed to recover a loss in Excel
Formula (Excel and Google Sheets)
=1/(1-B2)-1Divide 1 by what is left after the drop and subtract 1: =1/(1-B2)-1. After a 20% drop you need a 25% rise.
- Result on the example
- one result per row in
C2, filled down toC6 - Works in
- Every current version
- Google Sheets
- Same formula
See it work
The formula is already in C2, filled down to C6. Change any input and the result updates, or edit the formula to experiment.
How it works
After a 20% drop, 80% of the original is left. To get back to 100%, the new level has to grow by 100/80, a factor of 1.25: a 25% rise. In general the factor is 1/(1-drop), and subtracting 1 turns it into a percentage increase.
The bigger the drop, the faster the required rise grows: halving needs +100%, and a 75% drop needs +300%.
=1/(1-B2)-1Result0.1111111111
B210.0%The value in B2.
1-B20.9The - operator subtracts.
1/(1-B21.111111111The / operator divides.
1/(1-B2)-10.1111111111The - operator subtracts.
In Google Sheets
The same formula works in Google Sheets: =1/(1-B2)-1. We ran it in Google Sheets mode on the same data and it returns the same results.
Other ways to do it
Each one was run on the same example sheet.
| Formula | Result | When to use it |
|---|---|---|
| =B2/(1-B2) | 11.1%, 25.0%, 33.3%… | The same result, simplified: the drop divided by what is left. |
| =B2 | 10.0%, 20.0%, 25.0%…Different result | The common assumption that the same percentage brings you back. Too low: a 20% rise after a 20% drop only reaches 96%. |
Common mistakes
- A percentage drop and the same percentage rise don't cancel: 100 → 80 → 96.
- A drop of 100% leaves nothing, and the formula divides by zero.
Try it yourself
Same data, empty answer cell. Your formula is graded instantly, then re-checked on changed data, so a typed-in number won't pass.
Calculate the percentage gain needed to recover a loss
C2, calculate the percentage increase needed to get back to the level before the drop, then fill down to C6.Questions
How do I check the answer?
Apply both changes: =(1-B2)*(1+C2) should return 1.
How much do I need to drop to undo a rise?
Use =1-1/(1+rise): undoing a 25% rise takes a 20% drop.
Checked by running on 2026-10-30: every formula and result on this page was calculated by the Spreadsheet Practice formula engine, in both Excel and Google Sheets modes.