Prop firm break-even math: how much profit it takes to cover your challenge fee
A challenge fee is only the start of the cost. Here is a simple way to work out how much funded profit you need before a prop account has paid for itself — and the rules that move that number.
Prop firm marketing focuses on the upside: account size, profit split, payout speed. The quieter question is how much you have to make before you are back to zero. That number depends on the fee, the split, refunds, extra fees and how many attempts you need.
This explainer shows a simple way to work it out. The figures are illustrative. Always confirm current prices and terms on the firm's own site.
The basic formula
At its simplest:
Break-even funded profit = total cost ÷ your profit split
Take a challenge fee of about $540, roughly the widely cited 2026 price of a $100K FTMO 1-Step (our data flags this price as unverified). FTMO lists a 90% split on the funded account. So:
- $540 ÷ 0.90 = $600 of funded profit before you have recovered the fee.
On a $100K account that is 0.6%. That sounds small, but it ignores most of what follows.
Refundable fees change the maths
Some firms return the fee with a payout, which can bring break-even close to zero. The details differ a lot:
- FTMO: the 2-Step fee is refunded with the first reward. The 1-Step fee is not refunded.
- The5ers: returns 70% of the refundable fee with the first payout, after at least $150 profit and 14 days active.
- FundedNext: timing depends on the product. 2-Step refunds with the 1st reward, Lite with the 3rd, and Stellar Instant has no refundable fee.
- Maven: lists a full refund on the trader's third withdrawal.
- E8 Markets: refundable only if you have never traded and are within 30 days of purchase. It is not refunded for passing.
A refund paid on the third payout only helps if you reach a third payout. See refundable fees explained.
Fees beyond the challenge
Count every fee, not just the headline one:
- Activation fees. Apex lists a separate one-time activation fee on passing (around $139 on $100K). Topstep offers an activation-fee path and a no-activation-fee path with a higher monthly price.
- Subscriptions. A monthly fee grows the longer you take. See one-time vs monthly pricing.
- Add-ons. Paying for a higher split or more drawdown raises your cost base. See add-ons explained.
Attempts multiply the cost
The formula above assumes you pass first time. Many traders don't. If it takes three attempts, a $540 fee is a $1,620 cost base, and break-even at a 90% split becomes $1,800. That is why a lower price with tighter rules is not always cheaper. Compare rules side by side on the account comparison.
Payout gates delay break-even
Even with profit on the books, rules decide when you can withdraw it:
- Minimum payouts. FTMO lists $20 (bank) / $50 (crypto). Topstep lists $125 per request.
- Timing. FTMO's first reward is available on or after day 14 from the first trade.
- Caps and consistency. Per-request caps and consistency rules can split a large win across several payouts. See payout caps.
A quick worksheet
- Add up every fee: challenge, activation, subscription months, add-ons.
- Multiply by the number of attempts you realistically expect.
- Subtract any refund, but only if you expect to reach the payout it depends on.
- Divide by your profit split.
- Check the minimum payout, first-payout timing and caps against that figure.
Terms like profit split, activation fee and consistency rule are defined in our glossary. If you plan to automate, check AI & EA rules as well. A rule breach resets the maths. Full per-firm details are in our firm dossiers.
Key takeaways
- Break-even funded profit ≈ total cost ÷ profit split.
- Count every fee, and multiply by the attempts you realistically need.
- Refunds help only if you reach the payout they are tied to, which may be the 1st or the 3rd.
- Minimums, first-payout timing and caps decide when you actually break even.
- Figures here are illustrative, not a forecast. Nothing here is investment advice, and most challenge buyers never reach a payout.
