Prop Firm Challenge Calculator
Calculate required daily profit targets and maximum daily/total drawdown for FTMO, MFF, and others.
Formula
Daily Target = (Account × Profit Target %) / Trading Days | Risk Amount = Account × Risk %
The daily target divides the total profit target evenly across available trading days. Risk per trade is calculated as a percentage of the account. Trades needed is determined by dividing the target amount by the profit per winning trade (risk amount × RR ratio). This helps you plan a realistic path to passing your challenge.
Worked Examples
Example 1: $100K FTMO Challenge Plan
Problem: $100,000 account, 8% profit target, 5% daily loss, 10% total drawdown, 30 days.
Solution: Target = $100,000 × 8% = $8,000\nDaily Target = $8,000 / 30 = $266.67 (0.27%/day)\nMax Daily Loss = $5,000\nAt 1% risk ($1,000/trade) with 2:1 RR:\nProfit per win = $2,000, Trades needed = 4 winners
Result: $267/day target | 4 winning trades at 1% risk with 2:1 RR
Example 2: $50K Account — Conservative Plan
Problem: $50,000 account, 8% target, 5% daily, 10% drawdown, 30 days.
Solution: Target = $4,000 | Daily Target = $133.33\nAt 0.5% risk ($250/trade) with 3:1 RR:\nProfit per win = $750\nTrades needed = ⌈$4,000 / $750⌉ = 6 winning trades
Result: $133/day target | 6 winning trades at 0.5% risk with 3:1 RR
Frequently Asked Questions
What is a prop firm challenge?
A proprietary trading firm (prop firm) challenge is an evaluation process where traders must demonstrate their skills by meeting profit targets while adhering to strict risk management rules. Traders typically pay a fee to take the challenge, trade on a simulated account, and if they pass by reaching the profit target without violating drawdown limits, they receive a funded account to trade real capital. Popular prop firms include FTMO, MyFundedFX, The Funded Trader, and many others. Challenges usually have two phases and specific rules about daily loss limits, total drawdown, and minimum trading days.
What are typical prop firm challenge rules?
Typical rules include: Profit target of 8-10% in Phase 1 and 5% in Phase 2. Maximum daily loss of 5% of initial balance. Maximum total drawdown of 8-12% of initial balance. Minimum trading days of 4-5 days. No holding trades over weekends (varies by firm). No news trading within certain windows. Time limits range from 30 days to unlimited. Account sizes typically range from $10,000 to $200,000. Some firms have scaling plans that increase your account size after consistent profitability.
How should I plan my daily targets for a prop firm challenge?
Divide your profit target evenly across trading days as a guideline, but do not force trades to meet daily targets. For example, on a $100,000 account with an 8% target over 30 days: daily target = $8,000 / 30 = $267/day or 0.267%. However, some days will be better than others. A better approach: aim for 0.5-1% on high-probability setup days and take no trades on low-quality days. Front-load your effort — try to reach 50% of the target in the first half so you can trade conservatively in the second half. Never increase risk to catch up.
What risk per trade should I use in a prop firm challenge?
Most successful prop firm traders risk 0.5-1% per trade during challenges. At 1% risk on a $100,000 account, you risk $1,000 per trade. With a 2:1 RR ratio, each winner nets $2,000, meaning you need 4 winning trades to hit an 8% target. At 0.5% risk, you have more room for losses but need more winning trades. Never risk 2%+ per trade in a challenge — a few losses and you are too close to the drawdown limit. The key is consistency: steady small gains compound faster than boom-and-bust cycles.
What is the pass rate for prop firm challenges?
Industry estimates suggest only 5-15% of traders pass prop firm challenges. The most common reasons for failure are: exceeding the daily loss limit (about 40% of failures), exceeding total drawdown (about 30%), and not reaching the profit target in time (about 30%). Traders who use disciplined risk management and accept small consistent gains have much higher pass rates. Many prop firms publish their statistics: for example, FTMO has reported that about 10% of challengers eventually receive funded accounts. Preparation, practice on demo accounts, and a proven strategy are essential before attempting a challenge.
What is the difference between Phase 1 and Phase 2 of a prop firm challenge?
Most prop firms use a two-phase evaluation. Phase 1 typically has a higher profit target, usually eight to ten percent, with a time limit of thirty days. Phase 2 has a reduced profit target of around five percent with the same drawdown rules but sometimes a longer time window of sixty days. The drawdown limits remain consistent across both phases. Some firms allow unlimited time for each phase. Passing both phases demonstrates that a trader can consistently generate profits while managing risk effectively.