Prop firm drawdown calculator
Enter your account's rules and where your balance and equity are now, and see how much more you can lose before breaking the daily loss limit or the max loss, static or trailing.
You can still lose
$3,200
before the daily loss limit breaks. Equity mustn't touch $96,200.
- Daily loss floor
- $96,200
- Max loss floor
- $90,000
- Daily allowance
- $5,000
- Max loss allowance
- $10,000
How the limits are worked out
Daily loss limit
The daily loss limit is measured from where your account stood at the start of the trading day. At most firms the allowance is a percentage of the initial account size, so a 5% limit on $100,000 is $5,000 every day; a few use a percentage of the day's starting balance instead. If today started at $101,200, your equity has to stay above $101,200 − $5,000 = $96,200 until the day resets.
It's equity that counts: your balance plus or minus the profit or loss on open trades. A trade that's $5,000 down breaks the rule even if you never close it. Some firms also start the day from the higher of your balance and equity, so open profit you hold overnight raises the next day's floor.
Static max loss
A static max loss never moves. With a 10% limit on $100,000, equity must stay above $90,000 for the whole challenge, however much profit you make first, so every dollar of profit adds to your room.
Trailing max loss
A trailing max loss follows your highest balance. With a 10% trailing limit on $100,000, the floor starts at $90,000; when your balance reaches $104,000 it rises to $94,000, and it doesn't come back down when you lose. Many firms stop the trailing once the floor reaches the starting balance, so from then on it stays at $100,000. There's more on this in trailing vs static drawdown.
Which one breaks first
Both limits apply at the same time, and whichever floor is higher is the one you'll hit first. The calculator highlights it and shows how much more you can lose before you reach it. With the example values above, the daily floor of $96,200 is higher than the max loss floor of $90,000, so with equity at $99,400 you can lose $3,200 more today.
To turn that room into a trade size, use the position size calculator.
Questions
Does the daily loss limit include open trades?
At most prop firms it does. The limit applies to your equity, so a floating loss counts as soon as it happens, not only when you close the trade.
When does the daily loss limit reset?
At a fixed time each day set by the firm, often midnight in the firm's server time zone, which for many brokers is 5 pm in New York. Check your firm's rules for the exact time.
Is a trailing drawdown based on balance or equity?
It depends on the firm. A balance-based trailing drawdown only moves up when you close trades in profit. An equity-based one also moves with open profit, so it's stricter: profit you give back before closing still raises the floor.
What happens when equity reaches the limit?
At most firms the account fails the moment equity touches the floor, even if the trade would have recovered later. The calculator treats reaching the floor as breaking the rule.
Is max loss the same as max drawdown?
Yes. Firms use max loss, max drawdown and overall loss limit for the same rule: the lowest your account can go before it fails.