Prop Firm Break-Even Calculator

How many challenge sales does a prop firm need to break even?

Divide your total monthly fixed costs (tech, staff, marketing, tools) by your average challenge price. That gives you the minimum sales volume to cover overhead before trader payouts. This calculator does that math and shows your margin at your current sales volume.

Should I include trader payouts in break-even calculations?

Challenge sales revenue and funded trader payouts are separate P&L lines. This calculator focuses on covering your fixed operating costs from challenge sales - the first hurdle for any new prop firm. Once funded, you also model payout liability and pass rates in your full financial plan.

What is a realistic challenge refund rate to assume?

Refund rates vary by firm policy and pass rates. Many operators assume 5-15% of gross challenge revenue is refunded or charged back in early months. Use the refund rate field here to stress-test net revenue against your monthly cost base.

When is a prop firm business model viable?

Viability depends on challenge volume, pricing, cost discipline, and payout exposure. A model is viable when net challenge revenue consistently exceeds fixed costs with room for payouts and reinvestment. Use this tool alongside Prop Tech Pal tech cost and launch estimators for a full picture.