Challenge fee ($)
Account size ($)
Profit target (%)
Your profit split (%)
Number of payout cycles
Result (click to copy)
How to Use the Funded Account ROI Calculator
- Enter the challenge fee — the amount you paid to attempt the challenge (e.g. $550 for FTMO $100K).
- Enter account size — the funded account size you are targeting (e.g. $100,000).
- Set profit target — the percentage you need to achieve for each payout cycle (typically 8–10%).
- Set your profit split — the percentage of profits you keep (usually 70–90%). FTMO offers up to 90%, most firms start at 80%.
- Set payout cycles — how many times you plan to hit the target and request payout. The calculator shows cumulative earnings and break-even point.
- Compare account sizes — the bottom section shows ROI for all standard account sizes from $5K to $200K, helping you choose the most cost-effective option.
💡 Fee refund check: Many firms refund the challenge fee after your first payout. If your firm does this, your net ROI calculation changes dramatically — set fee to $0 for the true ROI after refund.
Understanding Prop Firm ROI
The economics of prop firm trading are unlike any other financial instrument. The leverage on your challenge fee is extraordinary — but only if you pass consistently. Understanding the true ROI requires accounting for your pass rate.
💰 Gross Payout
Account Size × Profit Target % = your gross profit each cycle. On a $100K account with 8% target: $8,000 gross per cycle before the firm's cut.
✂️ Net Payout
Your actual payout after the profit split. At 80% split: $8,000 × 80% = $6,400 per cycle. At 90% split: $7,200. The split percentage matters more on larger accounts.
🔄 Break-Even Cycles
How many payouts to recover the challenge fee. $550 fee ÷ $6,400 payout = 0.086 — meaning you recover the fee within the first payout. Most challenges break even in 1–2 payouts.
📈 True ROI
Net earnings over multiple cycles minus the fee, divided by the fee. A $550 fee generating $6,400 on the first payout = 1,064% ROI. Even adjusting for 50% pass rate: 532% expected ROI per attempt.
⚡ Scaling Benefits
Many firms offer scaling — increasing your account size as you prove consistent profitability. FTMO's scaling plan adds roughly 25% per milestone, capping at $400,000. Each scale-up multiplies your payout proportionally with no additional fee. Scaling caps and terms vary by firm and change over time — confirm current terms before relying on this figure.
🎯 Account Size Optimisation
Larger accounts have better ROI on fees. A $200K account often costs less than 2× the $100K fee but earns 2× the payout. Always check the fee-to-account-size ratio before choosing your challenge level.
Maximising Your Prop Firm Income
Multiple firm strategy
Professional prop traders typically run accounts at 2–4 different firms simultaneously. This diversifies the risk of any single firm's rule changes, payment delays, or closure. It also multiplies income — 3 funded $100K accounts at 80% split generating 8% quarterly each = $57,600/year. This is achievable with disciplined risk management.
Scaling path
Most firms offer scaling plans. FTMO scales your account by 25% every 4 months if you are consistently profitable. Starting at $100K and scaling every 4 months: $100K → $125K → $156K → $195K within a year. The same trading skill generates proportionally more income each cycle.
Compounding challenge fees
Use your first payout to fund your next challenge at a higher account level. First payout of $6,400 comfortably funds a $200K challenge fee ($1,100). The compounding of account size through reinvesting payouts is the fastest path to large funded account sizes.
🏦 The funded trader career path: Year 1 — Pass $100K challenge, earn $25,600/year (4 cycles). Year 2 — Scale to $200K, earn $51,200/year. Year 3 — Multiple firms, earn $100K+/year. The math works — if the trading edge is real and consistent.
Avoid These Mistakes
Ignoring pass rate in your real expected value
This calculator shows ROI *if you pass and hit target*. Multiply by your realistic pass probability before treating the ROI figure as an expected outcome — a 1,000% ROI on a 20% pass rate is a very different bet than the headline number suggests.
Forgetting the fee isn't always refunded
Some firms refund the challenge fee after your first payout — but only if you actually reach a profitable payout. Fail the challenge, or pass but never profit on the funded account, and the fee is gone regardless of the refund policy.
Comparing account sizes by fee alone
A larger account's fee isn't proportional to a smaller one's — check the fee-to-payout ratio (shown in the "Compare account sizes" section), not just which fee is cheaper upfront.
Assuming scaling terms are fixed and universal
Scaling percentages, caps, and milestone requirements vary by firm and change over time. Confirm your specific firm's current published terms rather than assuming industry-typical figures apply.
Frequently Asked Questions
Is a prop firm challenge worth the fee?
It depends on your win rate and consistency. A $550 FTMO challenge on a $100K account: first payout = $100K × 8% × 80% = $6,400. ROI on fee = ($6,400 - $550)/$550 = 1,064%. Even if you pass only 1 in 3 attempts, the expected value is strongly positive with a profitable strategy.
What is the best account size to challenge?
Larger accounts have better ROI relative to challenge fees. A $100K account fee is not 10× a $10K fee — fees scale less than linearly. The $100K account often gives 5-8× better ROI per dollar of fee than the $10K account.
Can I get refunded the challenge fee?
Some firms refund the challenge fee after your first successful payout (FTMO does this). If the fee is refunded, your net ROI is 100% of your first payout. Always check if your firm offers fee refunds — it significantly changes the math.
References
📄 Your prop firm's published terms
Challenge fees, profit splits, scaling caps, and refund policies vary by firm and change over time. Always confirm current terms on your specific firm's official pricing/rules page before relying on figures from this or any third-party source.
📊 Published pass-rate data
Most prop firms don't officially publish pass rates. Independent trader communities and review sites periodically estimate them — treat any pass-rate figure, including examples on this page, as an illustrative estimate, not a guarantee.