How much can you earn with a prop firm? Real calculations 2026

What Determines Your Prop Firm Earnings

Before looking at the numbers, you need to understand the three variables that determine your prop firm income. None of them can be ignored because they multiply together.

Account size. This is the single most important factor. A 5% return on a $50,000 account generates $2,500 in gross profit. The same return on a $400,000 account generates $20,000. Account size directly multiplies all your results, which is why experienced traders seek the largest possible account. At RaiseMyFunds, accounts go up to $400,000, which is double what most competitors offer.

Monthly return. This is the performance the trader generates each month as a percentage of capital. A conservative return is around 2%, a moderate return around 5%, and an aggressive return around 10%. Professional traders generally aim for 3-5% per month with strict risk management. Beyond 10%, consistency becomes very difficult to maintain over time.

Profit split. This is the percentage of profits the trader keeps. An 80% profit split means the trader keeps 80% and the prop firm retains 20%. At RaiseMyFunds, the profit split ranges from 70% to 85% depending on account size. Choosing a larger account means a higher share of profits.

The formula is straightforward: Monthly income = Account size x Monthly return x Profit split. For example, $200,000 x 5% x 80% = $8,000 per month.

Real Calculations by Account Size

Here are the estimated monthly earnings across three performance scenarios. These calculations use an 80% profit split, which is the market average. We will look at the impact of a higher profit split in the next section.

These numbers highlight the critical importance of account size. A moderately performing trader (5% per month) on a $400,000 account earns the same as a high-performing trader (10% per month) on a $200,000 account. But the 5% scenario is far more realistic and sustainable than 10%.

You also need to factor in losing months. A profitable trader does not make money every single month. Over 12 months, a good trader will typically have 8-9 positive months and 3-4 negative or flat months. The actual annual income will therefore be lower than the monthly figure multiplied by 12.

This calculation is more realistic than simple monthly multiplication. It factors in inevitable losses and shows that actual income is roughly 35% lower than the best-case theoretical calculation.

RaiseMyFunds: The Most Advantageous Scenario

RaiseMyFunds stands out on two points that maximize a trader's real earnings: a maximum account of $400,000 and no daily drawdown limit.

No daily drawdown changes everything. Most prop firms impose a 5% daily drawdown. If a trader loses 5% in a single day, the account is terminated, even if the strategy remains profitable over the week or month. At RaiseMyFunds, there is no daily drawdown. The trader can weather a bad day without losing the account. This allows for more consistent profit generation and a more stable monthly return.

No consistency rule. Some prop firms require that profits be distributed evenly across trading days. This penalizes strategies that capture significant moves on specific days. RaiseMyFunds imposes no consistency rule, letting the trader execute their strategy as they see fit.

No challenge required. RaiseMyFunds offers direct access to capital without an evaluation phase. The trader can start generating profits immediately, without wasting time and money on challenges that can take several weeks to complete.

The $9,000 monthly difference comes from two combined factors: an account twice as large ($400,000 vs $200,000) and a slightly higher profit split (85% vs 80%). Over a year, that represents more than $100,000 in additional income. And this calculation does not account for the fact that no daily drawdown enables more consistent returns.

RaiseMyFunds is based in Johannesburg, South Africa, and regulated by the FSCA (licence #50506). It is one of the few prop firms to hold a licence from an official financial regulator, adding a layer of security for trader funds.

The Reality of Prop Firm Trading

The calculations above show the potential. Here is the reality every trader needs to understand before getting started.

Only 10-20% of traders are consistently profitable. The majority of traders who attempt prop trading fail, either during the challenge phase (when there is one) or after receiving their funded account. Discipline, risk management and emotional control are just as important as the trading strategy itself.

Returns are not linear. A trader might make 8% one month, lose 3% the next, then post 1% the third month. Financial markets are unpredictable and past performance never guarantees future results. It is essential to plan your finances around variable income, not a fixed salary.

The risk of losing your account exists. Every prop firm imposes a maximum total drawdown. If the trader exceeds this limit, the account is terminated and they must purchase a new one. The cost of lost accounts must be factored into the overall profitability calculation. A trader who loses two accounts before stabilizing a third has a higher entry cost than expected.

Comparison with a personal account. A trader with $10,000 in personal capital generating 5% per month earns $500. With a $200,000 prop firm account at the same return, they earn $8,000 after profit split. The ratio is considerable. Prop trading provides access to capital far beyond what most traders can invest personally. For someone with limited savings, the prop firm model unlocks earning potential that would take years or decades to build through personal capital accumulation.

Psychological factors. Trading with a prop firm's capital creates different pressure compared to personal trading. Some traders perform better when they are not risking their own money. Others feel paralyzed by the fear of losing the account. It is important to know yourself before choosing between the two models. The best traders develop routines and processes that help them manage this psychological dimension effectively.

In summary, prop trading offers significant income potential for disciplined and skilled traders. Realistic earnings range from $2,000 to $17,000 per month depending on account size and performance. But you must approach this activity with clear-eyed awareness of the risks and success statistics.

Frequently Asked Questions