Prop Firm Drawdown Calculator
Pick an account size and challenge model to see your exact daily loss limit and maximum drawdown in dollars — using ForRealFunding's published rules.
Calculate your risk limits
Choose a model and account size below.
One evaluation phase. Both limits are measured from your starting balance and don't move as your account grows.
Daily loss limit (4%)
$4,000
Max you can lose in one trading day
Max drawdown (7%)
$7,000
static drawdown model
Breach level
$93,000
Fixed — balance or equity must stay above this
How drawdown is actually calculated
Drawdown is measured against whichever is higher — your account balance or your equity (balance plus floating profit/loss on open trades). That means an open losing position counts against your limit immediately, even before you close it.
Static drawdown (used on the 1-Step, 2-Step, and Pay After Pass evaluation models) is calculated from your starting balance and never moves. If you start with $100,000 and a 7% max drawdown, your breach level is fixed at $93,000 — even after you grow the account to $115,000.
Trailing drawdown (used on Instant Funding) moves up as your balance grows, until you hit a set profit threshold — at that point it locks in place and stops trailing.
Worked example — $100,000 account, 1-Step Challenge
- Daily loss limit: 4% of $100,000 = $4,000
- Max drawdown: 7% of $100,000 = $7,000
- Breach level: $100,000 − $7,000 = $93,000
- If balance or equity ever falls below $93,000, the account is breached.
Where traders actually blow their drawdown
Sizing off balance, not equity
An open trade moving against you counts immediately — don't assume you have room just because your last closed trade was a win.
Ignoring the daily limit while chasing the max
Traders often watch max drawdown closely but breach the tighter daily limit first, especially after one bad session.
Confusing static and trailing
On a trailing model, profit you've already banked can still raise your breach level — check which model you're on before assuming your cushion.
Oversizing on the widest-drawdown model
Pay After Pass's wider room is for skill-proving, not bigger position sizes — the profit target still requires controlled risk to reach consistently.
For a full walkthrough of position sizing against these limits, see how to calculate position size on a prop firm account.
Drawdown calculator questions
What's the difference between daily drawdown and maximum drawdown?
Daily drawdown is the most you can lose in a single trading day before the account breaches. Maximum drawdown is the total loss allowed on the account overall, measured from either your starting balance (static) or a level that trails your balance upward (trailing). Both are checked continuously, not just at day's end.
What's the difference between static and trailing drawdown?
Static drawdown is fixed to your starting balance and never moves, even as you gain profit — on a $100,000 account with 7% static max drawdown, your breach level stays at $93,000 whether your balance is $100,000 or $115,000. Trailing drawdown moves up as your balance grows, until it locks in place once you hit a set profit threshold.
Does floating (unrealized) P&L count toward my drawdown?
Yes. ForRealFunding calculates drawdown using whichever is higher — your account balance or your equity (balance plus open floating P&L) — so an open losing trade counts against your limit even before you close it.
What happens if I breach a drawdown limit?
During a challenge, breaching either limit closes that evaluation and you'd need to purchase a new one to try again. On a funded account, a breach closes the account permanently. A breach isn't a ban — you can always start a new challenge.
Do these drawdown limits change once I get funded?
They can. The figures on this calculator describe the evaluation/challenge stage for each model. Funded-stage rules follow the same balance-or-equity, floating-P&L-included logic, but always confirm the exact numbers for your account on your dashboard or the current pricing page before you trade live.
Do these numbers apply to every prop firm, or just ForRealFunding?
The percentages in this calculator are ForRealFunding's own published rules for its 1-Step, 2-Step, Instant Funding, and Pay After Pass models. Other prop firms set their own daily and maximum drawdown limits, which can be tighter or wider — always check the specific firm's rule sheet before buying a challenge.
Figures last verified against ForRealFunding's live program catalog on 2026-08-25. Rules can change — always confirm current limits on the pricing page before purchasing.