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FREE PROP-FIRM RISK TOOL

Prop-Firm Drawdown Calculator

Estimate daily and maximum loss room, planned-trade headroom, and equal-loss capacity for a simulated prop-firm challenge.

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CALCULATOR INPUTS

Enter your planning values

CALCULATED OUTPUT

Your planning estimate

Enter or adjust the values, then select Calculate results.

STEP-BY-STEP

How to use this tool

  1. Copy the official starting balance and the balance used at the firm’s daily reset.
  2. Enter both current balance and current equity so open losses are not ignored.
  3. Enter the exact daily and maximum loss percentages from the specific plan.
  4. Enter the maximum planned loss for the next trade.
  5. Review both breach levels and use the smaller headroom value.
  6. Confirm the result against the firm dashboard and official rule wording before trading.
WORKED EXAMPLE

See the calculation in context

On a $50,000 account with a 5% daily loss limit and 10% maximum loss limit, the simple floors are $47,500 and $45,000. If current balance and equity remain $50,000, estimated headroom is limited by the $2,500 daily allowance.

Calculation method

This basic static model calculates a daily floor from start-of-day balance and a maximum-loss floor from starting balance. Remaining headroom uses the lower of current balance or equity, then selects the smaller remaining limit.

AVOID THESE ERRORS

Common mistakes

  1. Treating every drawdown rule as static
  2. Ignoring floating P&L, fees or commissions
  3. Using the wrong reset time or time zone
  4. Assuming profits always increase the loss threshold
  5. Using remaining headroom as a recommended risk size
  6. Applying one firm’s formula to another firm
FREQUENTLY ASKED

Questions and answers

Does this calculate trailing drawdown?

No. This first release is a clearly labeled basic static model. Trailing, end-of-day, intraday and high-water-mark rules require plan-specific logic.

Why use the lower of balance and equity?

It is a conservative estimate that avoids ignoring open losses, but the firm’s exact definition remains authoritative.

Can this guarantee I will not breach?

No. Only the firm’s official dashboard and binding rules determine a violation. Prices, fees, resets and open P&L can change the result.

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USEFUL NEXT TOOLS

Continue the workflow

Educational-use notice.

Outputs are planning estimates, not investment advice or guarantees. Verify instrument specifications, fees, prices and binding prop-firm rules with the relevant official source before relying on any result.