ToolDox
Finance

Portfolio Stress Tester

Stress-test a portfolio against market drops, inflation spikes, and rate shocks to estimate downside pressure and recovery targets.

Stressed value
£153,550
17.0% drawdown
Modeled loss
£31,450
£25,900 from equity shock
Recovery target
20.5%
gain needed from stressed value
Refill estimate
34.9 months
at current monthly contribution
Stress test interpretation
This scenario is uncomfortable but not catastrophic. The portfolio appears able to absorb moderate stress without becoming structurally broken.
The allocation is less equity-heavy, so downside is being shared across more than one asset bucket.
At the current monthly contribution, refilling the modeled loss would take about 34.9 months if markets did not recover on their own.
Equity shock impact£25,900
Bond shock impact£2,220
Inflation drag£3,330
Starting portfolio value£185,000
Scenario loss£31,450
Recovery gain required20.5%

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What this stress tester is for

Most investors understand expected return. Far fewer understand what a bad year actually does to their portfolio, psychology, and required recovery path. This tool makes the downside concrete.

Why recovery math matters

A 20% loss does not require a 20% gain to recover. It requires 25%. The deeper the drawdown, the harder recovery becomes. That is why scenario testing matters before the stress arrives.

Use it alongside downside analysis

Pair this with the portfolio drawdown analyzer if you want both scenario-based stress testing and historical downside analysis.