A prop firm profit split is the share of trading profits you keep versus what the firm keeps, set as a fixed percentage. On an 80/20 split, you keep 80% of net profits and the firm takes 20%. Common splits run from 70/30 to 90/10 in the trader's favor, and some firms scale toward 100% as you prove consistency.
This is the prop firm profit split explained in plain terms: what it is, how it works, and what really shapes your earnings. It is written for traders new to funded accounts who want the common ratios, the factors that change them, and the fine print behind the percentage.
How Profit Splits Work
A profit split is simply how the money you make gets divided. You trade the firm's capital, the firm keeps a cut to cover that capital and its costs, and you keep the rest. The split is agreed before you trade and applies to your profits, not to the firm's starting capital. The firm's cut is not arbitrary. It pays for the capital you trade, the platform and data, and the risk of backing traders who may not perform.
The key word is net. Most firms calculate the split on your net trading profit — your gains after any losses in the period — not on every winning trade in isolation. So if you make $6,000 on some trades and lose $1,000 on others in a payout cycle, your split applies to the $5,000 net. That calculation resets each payout cycle, so a losing stretch can reduce or wipe out the profit a strong stretch built.
Here is the basic math. On an 80/20 split, a $5,000 net profit pays you $4,000 and the firm $1,000. On a 90/10 split, the same $5,000 pays you $4,500. The percentage is your share of what is left after your own losses. That is why disciplined risk management protects your earnings as much as the split does.
Common Profit Split Ratios
Most retail prop firms cluster around a few familiar ratios, usually weighted heavily toward the trader. You will most often see 70/30, 80/20, and 90/10, and a growing number of firms advertise paths to 100%. Higher splits have become a competitive selling point, which is good for traders but makes the rest of the terms easy to overlook.
The table below shows how the same gross profit lands at each split, so the difference is concrete rather than abstract.
| Profit split | Your share of $10,000 | The firm's share |
|---|---|---|
| 70/30 | $7,000 | $3,000 |
| 80/20 | $8,000 | $2,000 |
| 90/10 | $9,000 | $1,000 |
| 100/0 | $10,000 | $0 |
On a single month the gap looks modest, but it compounds. A trader earning $10,000 a month keeps $84,000 a year on a 70/30 split, or $108,000 on a 90/10 split. That is a $24,000 difference for the same trading. Over several years, the split you choose quietly shapes a large share of your income.
When a firm advertises "up to 100%," read the conditions carefully. A full split usually applies only after you clear scaling milestones or specific promotions, not from day one.
What Affects Your Profit Split
The number is rarely fixed forever. Several factors decide the split you actually get and whether it improves over time:
- Account tier or plan: higher-priced or advanced accounts often carry a higher split.
- Scaling plans: many firms raise your split, or your capital, as you post consistent results.
- Gross versus net: confirm whether the split is applied before or after your losses in the cycle.
- Funding model: instant-funding accounts sometimes trade a lower split for faster access.
- Consistency rules: some firms require steady results before the best split unlocks.
- Instrument or market: a few firms vary the split by the product you trade.
Knowing which of these apply tells you whether a headline split is what you will really earn, or just a starting point you have to work toward. Ask the firm which apply to your specific account, in writing, rather than assuming the advertised number is final.
Beyond the Percentage: What You Actually Keep
Here is the point most guides skip: the split is only one input into what reaches your bank account. A 90% split can pay less, in practice, than an 80% split at a better-run firm. The split is the number firms market hardest, precisely because it is the easiest to make look generous. Your job is to see past it.
What you actually keep depends on the whole package:
- Fees and resets: evaluation and reset costs come out of your pocket before any profit.
- Payout speed and frequency: money you cannot withdraw yet is not really yours yet.
- First-payout conditions: minimum trading days or profit buffers delay your first withdrawal.
- Drawdown rules: tight limits that end accounts early cut your earnings to zero.
A realistic comparison
Picture two traders, each earning $4,000 in a month. Trader A is on a 90/10 split but pays a steep reset after one breach and waits weeks to withdraw. Trader B is on an 80/20 split with no resets and a fast, reliable payout. Trader A keeps $3,600 on paper but nets far less after the reset, while Trader B banks $3,200 cleanly and on time. The higher percentage did not win. Run the same comparison over a year, and reset fees and lost trading days can swing thousands of dollars. That is often more than the split difference itself.
Common mistakes to avoid
- Chasing the highest percentage while ignoring fees, resets, and payout speed.
- Assuming the split is on gross profit when most firms calculate it on net.
- Overlooking scaling — a lower starting split that grows can beat a fixed high one.
- Forgetting taxes — your share is usually taxable income, so your take-home is lower than the split alone suggests.
On that last point, treat any profit you keep as income and plan for tax on it. Rules vary by country, so confirm your situation with a qualified professional rather than guessing.
Conclusion and Next Steps
A profit split is your share of the profits you generate, most often between 70% and 90% in your favor, applied to your net results. It is one of the most important terms in any funded account, but it is never the only one that matters.
Before you commit, run through a quick check:
- What is the exact split, and is it calculated on gross or net profit?
- Does a scaling plan raise it, and what triggers each step up?
- What fees, resets, and payout rules apply alongside it?
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