When something loses value, it takes a bigger percentage increase to get back to where it started because you're working from a lower number. For instance, if an investment drops from INR 100 to INR 90 (a 10% loss), it needs an 11.11% gain to return to INR 100. This happens because the recovery is based on the reduced value. The bigger the loss, the harder it is to bounce back like a 20% drop needing a 25% gain, or a 50% drop requiring a full 100% recovery.
The road to recovery gets harder the further you fall.
Here is a table showing the recovery percentages required for losses:
| For Loss (%) | Recovery Required is (%) |
|---|---|
| 1% | 1.01% |
| 2% | 2.04% |
| 3% | 3.09% |
| 4% | 4.17% |
| 5% | 5.26% |
| 6% | 6.38% |
| 7% | 7.53% |
| 8% | 8.70% |
| 9% | 9.89% |
| 10% | 11.11% |
| 15% | 17.65% |
| 20% | 25.00% |
| 25% | 33.33% |
| 30% | 42.86% |
| 35% | 53.85% |
| 40% | 66.67% |
| 45% | 81.82% |
| 50% | 100.00% |
| 60% | 150.00% |
| 70% | 233.33% |
| 80% | 400.00% |
| 90% | 900.00% |