A prop firm payout split is the percentage of trading profits you keep versus what the firm takes. Most firms advertise 80/20, meaning you keep 80% and they take 20%. Simple enough. Except it is not simple at all, because the number on the marketing page rarely tells you whether that split is calculated on gross or net profits, whether trading costs are deducted first, and whether the split improves over time. I have seen traders calculate their expected income from an 80/20 split and discover at payout time that the actual number was 15% lower because the firm calculated net, not gross. Here is how to avoid that surprise.
Key Takeaways
- 80/20 is the industry standard profit split. Anything below 70/30 is below market. Anything above 90/10 usually has a catch.
- Gross vs net split matters enormously. An 80/20 net split can cost you hundreds more per payout than an 80/20 gross split.
- Scaling plans can increase your split over time, but only if you stay funded and consistent for months.
- Profit split is one factor in choosing a firm. A 90/10 split with impossible rules is worse than an 80/20 split with achievable targets.
- Always calculate your actual take-home using a profit split calculator before comparing firms.
On This Page
What Is a Prop Firm Payout Split?
A profit split is the agreed division of trading profits between you and the prop firm. If you make $5,000 in a funded account and the split is 80/20, you receive $4,000 and the firm keeps $1,000. This is how the firm earns ongoing revenue from your trading.
The split is defined in the funded trader agreement you accept when you pass the challenge. It is not negotiable in most cases. Some firms offer different splits for different account types or challenge levels, so reading the terms before you buy matters.
Think of the split as the firm's cut for providing capital, infrastructure, and risk management. You trade with their money (or simulated capital representing their money), and they take a share of the upside. The prop firm business model depends on this revenue stream to stay solvent.
Common Profit Split Structures
Here are the profit split structures you will see across the industry, from worst to best.
| Split | Your Share | Firm's Share | Typical Use |
|---|---|---|---|
| 50/50 | 50% | 50% | Older firms, instant funding models |
| 60/40 | 60% | 40% | Budget firms, entry-level accounts |
| 70/30 | 70% | 30% | Some instant funding, lower-tier plans |
| 75/25 | 75% | 25% | Mid-range firms |
| 80/20 | 80% | 20% | Industry standard, most common |
| 85/15 | 85% | 15% | Competitive firms, scaling tier |
| 90/10 | 90% | 10% | Top-tier firms, experienced traders |
| 95/5 | 95% | 5% | Rare, usually promotional or limited |
80/20 is the sweet spot. It is fair to both sides and offered by most reputable firms. Anything below 70/30 should make you question what else the firm is cutting corners on. Anything above 90/10 should make you ask how the firm makes money, because a 5-10% cut on a $200 challenge fee funded account is a razor-thin margin.
Gross vs Net Profit Split
This is the single most important distinction in profit splits, and most traders miss it entirely.
Gross profit split means the percentage is calculated on total trading profits before any deductions. You make $5,000 in gross profit, the split is 80/20, you get $4,000. Trading costs like spreads, commissions, and swap fees are the firm's problem.
Net profit split means the percentage is calculated after deducting trading costs. You make $5,000 in gross profit, but after $500 in spreads and commissions, the net profit is $4,500. The 80/20 split gives you $3,600, not $4,000. That is $400 less than the gross calculation on the exact same trading performance.
The difference compounds over time. On monthly payouts of $5,000 gross profit, a gross 80/20 split gives you $48,000 per year. A net 80/20 split with $500 monthly trading costs gives you $43,200 per year. Same split percentage, same trading, $4,800 less in your pocket.
I always ask the firm whether their split is gross or net before buying a challenge. If they cannot give a straight answer, that is a red flag.
Real Examples: What You Actually Take Home
Let me walk through concrete numbers so you can see how different splits and structures affect your actual payout.
Scenario: You trade a $100,000 funded account and make $4,000 profit in a payout period. Trading costs (spreads, commissions, swaps) total $400.
| Split Structure | Calculation | Your Take-Home |
|---|---|---|
| 80/20 Gross | 80% of $4,000 | $3,200 |
| 80/20 Net | 80% of ($4,000 - $400) | $2,880 |
| 90/10 Gross | 90% of $4,000 | $3,600 |
| 90/10 Net | 90% of ($4,000 - $400) | $3,240 |
| 70/30 Gross | 70% of $4,000 | $2,800 |
| 50/50 Gross | 50% of $4,000 | $2,000 |
Notice the spread. On the same $4,000 profit, your take-home ranges from $2,000 to $3,600 depending on the split and calculation method. That is an 80% difference in income from the exact same trading performance. This is why comparing firms on split alone is meaningless without understanding the calculation basis.
Scaling Plans and Increasing Splits
Some prop firms offer scaling plans that increase your profit split over time as you prove consistency. This is one of the best features in the industry, because it rewards loyalty and discipline.
A typical scaling progression looks like this: you start at 80/20 for the first 3 months. After 3 consecutive profitable months, the split increases to 85/15. After 6 months, it reaches 90/10. Some firms also increase your account size alongside the split, which compounds your earning potential.
This sounds great, and it is, but remember that scaling plans only benefit traders who stay funded long enough to reach the higher tiers. According to community-compiled statistics from Forex Factory and r/PropFirmTester, the majority of funded traders do not survive past the first payout. If you never reach month 3, the scaling plan is irrelevant.
My approach: I value a good starting split over a potentially higher future split. An 80/20 split from day one is worth more to me than a 70/30 split that promises 90/10 after 6 months, because I might not last 6 months. Cash in hand beats future promises in this industry.
Hidden Deductions That Reduce Your Split
The advertised split is not always the final number. Several deductions can reduce what you actually receive.
Trading costs deducted before split. This is the gross vs net issue covered above. Some firms are transparent about it, others bury it in the terms.
Payout processing fees. Wire transfer fees, crypto network fees, or payment processor fees. Some firms deduct these from your payout, others absorb them. A $30 wire fee on a $2,000 payout effectively changes your 80/20 split to 78.5/21.5.
Platform or data fees. Some firms charge monthly platform or data fees that are deducted from your profits. A $50 monthly fee on a $2,000 payout changes your effective split from 80/20 to 77.5/22.5. Check what platform fees apply before you commit.
Drawdown buffer requirements. Some firms require you to maintain a minimum equity buffer before requesting payout. This does not change your split, but it means you cannot withdraw all your share of profits in one go.
Why a High Split Can Be a Trap
A 90/10 split with impossible rules is worse than a 75/25 split with achievable targets. I have seen firms advertise 90/10 splits with 10% profit targets, 2% daily loss limits, and 30-day maximum challenge periods. That combination means most traders never reach payout, so the split is theoretical.
When choosing a prop firm, look at the full picture: profit target difficulty, drawdown rules, minimum trading days, time limits, payout review speed, and track record of actually paying traders. A firm that pays 75% of real profits consistently is better than a firm that promises 90% of profits you will never earn.
I would rather trade with a firm offering 80/20 on achievable rules than a firm offering 90/10 on rules designed to make me fail before payout. The math only works if you actually get paid.
How to Calculate Your Real Take-Home
Before buying any challenge, calculate your expected income honestly. Use a profit split calculator and factor in these variables.
Start with your expected monthly profit (be realistic, not optimistic). Multiply by your profit split percentage. Deduct trading costs if the split is net. Deduct payout processing fees. Deduct any platform or data fees. The resulting number is your actual monthly income from the funded account.
Then compare that number to the challenge fee. If a $300 challenge fee buys you an account where your realistic monthly take-home is $1,500-2,000, that is a strong return. If the realistic take-home is $400-600 after all deductions, you need to question whether the risk-reward makes sense.
I always run the numbers before committing to a new firm. It takes 5 minutes with a spreadsheet. It has saved me from making at least three bad decisions over the years.
What is a good profit split for a prop firm?
80/20 is the industry standard for most established prop firms, meaning you keep 80% of profits. Some firms offer 90/10 splits, which is generous but often comes with stricter rules or higher challenge fees. Be wary of firms offering 95/100% splits, as they may compensate with unrealistic rules or unreliable payouts.
What is the difference between gross and net profit split?
Gross profit split is calculated on total trading profits before any deductions. Net profit split is calculated after deducting trading costs like spreads, commissions, and swap fees. An 80/20 gross split on $5,000 profit gives you $4,000. An 80/20 net split on $5,000 profit after $500 in trading costs gives you $3,600. Always check which one the firm uses.
Do prop firm profit splits increase over time?
Many prop firms offer scaling plans that increase your profit split as you prove consistency. A typical progression might start at 80/20, increase to 85/15 after 3 months of consistent payouts, and reach 90/10 after 6-12 months. Some firms also increase account size alongside the split improvement.
How much do prop firms keep from your profits?
Prop firms typically keep 10-50% of trading profits depending on the profit split structure. At the common 80/20 split, the firm keeps 20%. This covers their operational costs, risk management, and profit margin. The split is how prop firms earn ongoing revenue from funded traders.
