Bear Market Impact Calculator

Calculate how a bear market could affect your portfolio and determine the monthly recovery amount needed.

$
%
months

Bear Market Impact Results

Calculated
Portfolio Loss
$0
Amount at risk
New Portfolio Value
$0
After market drop
Monthly Recovery
$0
Needed per month

Key Takeaways

  • A bear market is defined as a 20%+ decline from recent highs
  • Historically, bear markets recover within 1-3 years
  • Staying invested during downturns typically outperforms market timing
  • Dollar-cost averaging can reduce the impact of volatility

Understanding Bear Market Impact

A bear market is typically defined as a decline of 20% or more from recent market highs. This calculator helps you understand the potential impact of a bear market on your portfolio and calculate how much you would need to contribute monthly to recover your losses within a specified timeframe.

How This Calculator Works

The Bear Market Impact Calculator performs three key calculations:

  • Portfolio Loss: Your current portfolio value multiplied by the market drop percentage
  • New Portfolio Value: Your original value minus the calculated loss
  • Monthly Recovery Needed: The total loss divided by your recovery timeline in months

Important Considerations

This calculator provides a simplified view. Actual market recovery depends on many factors including market conditions, investment choices, and timing. The monthly recovery amount assumes you need to replace lost value through contributions alone, without accounting for market gains during recovery.

Historical Bear Market Context

Since 1929, the S&P 500 has experienced multiple bear markets. On average, bear markets last about 9-16 months, while bull markets (periods of rising prices) last significantly longer. Understanding this historical context can help investors maintain perspective during market downturns.

Pro Tip: Stay the Course

Investors who stay invested during bear markets and continue making regular contributions often see better long-term results than those who try to time the market. Consider viewing market downturns as opportunities to buy quality investments at lower prices.

Strategies During Bear Markets

  • Continue Dollar-Cost Averaging: Regular investments buy more shares when prices are low
  • Rebalance Your Portfolio: Market drops may shift your asset allocation
  • Review Your Risk Tolerance: Ensure your portfolio matches your comfort level
  • Avoid Panic Selling: Selling during downturns locks in losses
  • Consider Tax-Loss Harvesting: Realize losses to offset gains