Prop Firm Profit Split Explained: 80/20 vs 90/10
What is a prop firm profit split?
A prop firm profit split is the percentage of eligible trading profit a trader receives as a reward, while the firm keeps the remaining share. An 80/20 split means the trader receives 80% and the firm keeps 20%. A 90/10 split means the trader receives 90% and the firm keeps 10%.
For example, if you generate $10,000 in eligible profit, an 80/20 split pays you $8,000, while a 90/10 split pays you $9,000, assuming you meet all payout requirements and no separate fees apply.
The important thing to remember is that the highest advertised profit split is not always the best option. Starting rates, payout conditions, scaling rules, account types and withdrawal costs can all affect how much you actually receive.
Prop firm profit splits
- ●80/20: You receive 80% of eligible profit; the firm keeps 20%.
- ●90/10: You receive 90%; the firm keeps 10%.
- ●100% split: You receive all eligible profit covered by the arrangement, subject to payout rules.
- ●Higher isn't always better: A higher split may require a particular account type, payout option or qualifying milestone.
- ●Compare actual payouts: Check eligible profit, payout frequency, drawdown limits, consistency rules, fees and withdrawal restrictions.
- ●Check current terms: Firms can change their reward structures, so verify the official rules before purchasing an account.
How does a prop firm profit split work?
A prop firm profit split determines how eligible trading profits are divided between the trader and the firm. The percentage applies according to the specific program's reward terms, which may include conditions that must be satisfied before a payout is approved.
What do 80/20 and 90/10 mean?
| Profit split | Trader receives | Firm retains |
|---|---|---|
| 50/50 | 50% | 50% |
| 70/30 | 70% | 30% |
| 80/20 | 80% | 20% |
| 90/10 | 90% | 10% |
| 95/5 | 95% | 5% |
| 100/0 | 100% | 0% |
These figures describe the percentage division, not a guarantee that all account growth is immediately withdrawable.
How much do you receive on $10,000 in profit?
Assume your account generates $10,000 in eligible profit and you satisfy every applicable payout condition.
| Profit split | Your reward | Firm's share |
|---|---|---|
| 80/20 | $8,000 | $2,000 |
| 90/10 | $9,000 | $1,000 |
| 95/5 | $9,500 | $500 |
| 100/0 | $10,000 | $0 |
Moving from an 80% to a 90% trader share gives you an extra $1,000 on $10,000 in eligible profit. This is a 12.5% increase in your reward compared with the $8,000 you would receive at 80%.
$$ \frac{$9{,}000 - $8{,}000}{$8{,}000} \times 100 = 12.5% $$
The difference grows with eligible profit. On $30,000, for example, a 90% share pays $3,000 more than an 80% share.
These calculations assume the same eligible profit under both arrangements and exclude separate fees.
Is a prop firm profit split calculated on gross or net profit?
The answer depends on the firm's definition of eligible profit.
Trading commissions, spreads and swaps may already be reflected in the account's trading results. A separate withdrawal or payment-processing fee may then apply after the reward is calculated.
For example, suppose you have $5,000 in eligible profit, an 80% reward share and a separate $20 withdrawal fee.
- ●Eligible profit: $5,000
- ●Trader's share: $5,000 × 80% = $4,000
- ●Separate withdrawal fee: $20
- ●Illustrative amount received: $3,980
Do not deduct trading costs twice if they have already reduced the eligible profit figure.
Before purchasing an account, check:
- ●Which profit figure the split applies to.
- ●Whether trading costs are already included.
- ●Whether separate withdrawal fees apply.
- ●Whether minimum payout amounts or payout caps exist.
- ●Whether a safety buffer must remain in the account.
- ●Whether the profit split changes by account type or payout option.
What are flat, tiered and scaling profit splits?
Prop firms may use different structures to determine the trader's reward percentage.
1. Flat profit split
A flat split applies the same percentage to all eligible profit covered by the agreement.
For example, with an 80% flat split on $10,000 in eligible profit, you receive $8,000.
2. Tiered profit split
A tiered structure applies different percentages to separate profit bands.
Consider this illustrative arrangement:
| Eligible profit band | Trader's share | Reward |
|---|---|---|
| First $10,000 | 80% | $8,000 |
| Next $10,000 | 85% | $8,500 |
| Next $10,000 | 90% | $9,000 |
| Total | — | $25,500 |
On $30,000 in eligible profit, the trader receives $25,500 under this example. If 90% applied to the entire amount, the reward would be $27,000.
This is an illustration of tiered arithmetic, not a claim that a particular firm uses these exact profit bands.
3. Scaling profit split
A scaling plan allows a trader's reward percentage, account size or both to increase after meeting specified requirements.
Depending on the firm, qualifying conditions may include profit targets, profitable days, account growth or completed payout cycles.
Always check when the higher rate takes effect, whether it applies to all eligible profit, and whether previously paid rewards are excluded. Do not assume an upgrade applies retroactively.
How do The5ers, FTMO, FundedNext and FundingPips compare?
Profit splits vary by program and payout option, so the comparison should focus on specific account models rather than treating each firm as having one universal rate.
The following is a summary of the structures described in the firms' published program information. Verify the current official terms before purchasing because rates and conditions can change.
| Firm and program | Published or selected reward share | Key consideration |
|---|---|---|
| FTMO 1-Step | 90% | Applicable trading objectives and payout conditions |
| FTMO 2-Step | Starts at 80%; can rise to 90% | Scaling Plan or Premium Programme conditions |
| The5ers High Stakes | Starts at 80%; can scale toward 100% | Scaling targets and profitable-day requirements |
| The5ers Hyper Growth | Starts at 50%; can scale toward 100% | Funded-stage terms and growth milestones |
| The5ers Bootcamp | Starts at 50%; can scale toward 100% | Stage progression and scaling requirements |
| The5ers Pro Growth | Starts at 75%; can scale toward 100% | Program-specific scaling conditions |
| FundedNext Stellar Lite | Depends on payout option; published options include 60%, 80% and 90% | Selected reward option and add-ons |
| FundedNext Stellar Instant | 70% at Tiers 1–2; 80% from Tier 3 | Scale-up progression and reward eligibility |
| FundingPips 2-Step Standard | Published options include 60%, 80%, 90% and 100% | Selected reward cycle and its conditions |
| FundingPips Zero | 95% bi-weekly | Profitable-day, consistency and safety-cushion rules |
These are program-specific examples, not guarantees of the rate that will apply to every trader or account.
The5ers profit split
The5ers offers different starting reward shares across its programs, with scaling opportunities governed by individual account rules.
When comparing its plans, check the starting percentage, scaling milestones, payout timing, account-growth requirements, reward limits and fee-refund conditions.
A fee refund is separate from a profit split. It may be conditional or credited to account equity rather than returned automatically as cash. Review the relevant program's current terms to understand how refunds work.
Official resource: The5ers FAQs
FTMO profit split
FTMO's published reward structure distinguishes between its 1-Step and 2-Step routes. The 1-Step model offers a 90% reward share, while the 2-Step model starts at 80% and can reach 90% under qualifying conditions.
FTMO describes these payments as rewards based on simulated trading results, rather than withdrawals of personal trading capital.
Check the applicable reward ratio, scaling requirements, withdrawal method, payout eligibility and any payment-provider charges. A higher reward percentage does not remove trading objectives or risk limits.
Official resource: FTMO: How do I withdraw my profits?
FundedNext profit split
FundedNext's reward share depends on the account model and payout option. Stellar Lite has different reward rates associated with its available payout options, and a Lifetime Reward add-on may provide a 95% share under its terms.
Stellar Instant follows a different structure, with a 70% share at Tiers 1 and 2 and an 80% share from Tier 3 onward.
Check whether the selected payout option can be changed after purchase, what conditions apply to reward requests, and whether additional features require a separate fee.
Official resource: FundedNext Help Center
FundingPips profit split
FundingPips' 2-Step Standard model lists different reward shares for different payout cycles, including weekly, bi-weekly, On-Demand and monthly options.
Its Zero model has a separate reward structure, including a published 95% bi-weekly share.
Conditions can include consistency requirements, profitable days, minimum reward amounts and a safety cushion. A higher percentage therefore does not necessarily mean that the full amount can be withdrawn immediately.
Official resource: FundingPips Help Center
What reduces the profit you actually receive?
Your final payout can differ from the simple percentage calculation because of separate charges or rules affecting eligibility.
Costs to consider
- ●Trading costs: Commissions, spreads and swaps can affect account performance.
- ●Program costs: Challenge fees, activation fees and optional add-ons may apply. They are not automatically deducted from every reward.
- ●Withdrawal costs: Payment-provider charges, currency conversion and transfer fees may affect the amount received.
- ●Payout restrictions: Minimum reward thresholds, payout caps, consistency rules, profitable-day requirements and safety cushions may limit when or how much you can withdraw.
For example, a firm might advertise a 95% reward share but require a trader to satisfy several conditions before requesting a payout. Another firm might offer a lower share with a more suitable payout schedule.
The headline percentage alone does not tell you which arrangement will deliver the better practical outcome.
How do you calculate your actual prop firm payout?
For a simple arrangement where the split applies to eligible profit and a separate withdrawal fee is charged afterward, use this formula:
$$ \text{Payout} = (\text{Eligible profit} \times \text{Trader's share}) - \text{Separate withdrawal fees} $$
Suppose two hypothetical programs have $5,000 in eligible profit.
| Calculation | Program A | Program B |
|---|---|---|
| Eligible profit | $5,000 | $5,000 |
| Trader's share | 80% | 90% |
| Reward before withdrawal fee | $4,000 | $4,500 |
| Separate withdrawal fee | $20 | $50 |
| Illustrative payout | $3,980 | $4,450 |
Program B pays $470 more in this example. However, the comparison assumes both traders qualify for payout on the same eligible profit and that no other restrictions apply. The fees are hypothetical.
Use the following checklist to compare programs:
- ●Starting reward percentage.
- ●Conditions for a higher split.
- ●Eligible profit used in the calculation.
- ●Payout frequency and first-payout timing.
- ●Minimum payout and maximum reward limits.
- ●Consistency and profitable-day requirements.
- ●Daily and maximum drawdown rules.
- ●Trading, program and withdrawal costs.
- ●Refund conditions and account-specific restrictions.
A lower split can be a reasonable choice if the program's payout conditions and risk rules better suit your trading approach. A higher share is valuable only if you can qualify for and withdraw the reward under the agreement.
Key takeaways
- ●An 80/20 split gives the trader 80% of eligible profit; a 90/10 split gives the trader 90%.
- ●On $10,000 in eligible profit, the difference between these splits is $1,000.
- ●Advertised maximum rates may depend on account type, payout option or qualifying milestones.
- ●The5ers, FTMO, FundedNext and FundingPips have different reward structures and conditions.
- ●Separate fees and payout restrictions can affect the amount you receive.
- ●Always verify the official terms for your specific account before purchasing a challenge or requesting a reward.
Practical next step: If you're considering The5ers, compare High Stakes, Hyper Growth, Bootcamp and Pro Growth using their current starting splits, scaling milestones, payout requirements and fee terms. Then calculate your potential reward using the same eligible profit across each option.
For more prop firm comparisons and trading education, explore Prop Firm Insider.