Prop Firm Risk & Drawdown Calculator
Passing a prop-firm challenge is rarely about the profit target — it is about not breaching the daily loss limit or the maximum drawdown. This free prop firm risk & drawdown calculator takes your firm's real rules, your account size and your trade, and shows exactly how much you are risking, how many losing trades you can survive before you are out, and a safer position size. Pick your firm, enter your trade, and protect your account before you place it.
Optional — fine-tune your firm's rules
These fill in from the firm you picked. Change them if your program or account type is different, or pick “Custom” above.
How to use the prop firm risk calculator
Pick your prop firm, set your account size, then enter your pair, stop loss and lot size. The tool instantly shows your dollar risk per trade, how many losing trades you can take before you breach the daily loss limit or the maximum drawdown, how much profit you need to pass Phase 1, and a safer lot size that risks around 1% of the account per trade.
Frequently asked questions
What is the daily loss limit (daily drawdown)?
The daily loss limit is the most your account can drop in a single trading day before the firm closes it. It is usually 4–5% of the account size and is measured from your balance (or equity) at the start of the day. It is the rule that ends most prop challenges — not the profit target.
What is the difference between daily drawdown and maximum drawdown?
The daily loss limit resets each day; the maximum (overall) drawdown is a single floor for the life of the account. If either one is breached, the account is gone. Maximum drawdown is usually 6–10% of the account.
What is trailing vs static drawdown?
A static (or balance-based) maximum drawdown is fixed in dollars from your starting balance, so every dollar of profit adds to your buffer. A trailing drawdown follows your highest balance or equity upward, so profits can raise the floor beneath you. This tool uses your firm's starting limits; always check whether your firm trails.
How much should I risk per trade at a prop firm?
Most funded traders risk around 0.5–1% of the account per trade, so that a normal losing streak cannot get near the daily loss limit. This calculator shows a “safer lot size” set to about 1% risk, plus how many losses your current size would take to breach the limits.
Why do most traders fail prop firm challenges?
Usually by breaching the daily loss limit with a position that is too large — one or two losing trades wipe out the day’s allowance. Sizing each trade so a loss is a small fraction of the daily limit is the single biggest thing that keeps an account alive.
Does this calculator connect to my prop account?
No. It is an educational risk tool. It never asks for logins, connects to no firm, and cannot place or close trades. Prop-firm rules change often and vary by program — always confirm the exact limits with your firm before you trade.