Calculate remaining daily and overall drawdown room from your account balance and firm limits.
How this is calculated
Static overall floor = starting balance × (1 − max drawdown % ÷ 100)
Trailing overall floor = peak balance × (1 − max drawdown % ÷ 100)
Room to overall breach = current balance − overall floor
Daily floor = today's starting balance × (1 − daily loss limit % ÷ 100); room to daily breach = current balance − daily floor
Binding floor = the higher of the two floors; binding room = current balance − binding floor
Worked example
Starting balance $50,000.00, current $51,200.00, peak $51,800.00, max drawdown 6% trailing, daily loss limit 3%, today's starting balance $51,200.00.
Trailing overall floor = 51,800 × 0.94 = $48,692.00, so room to overall breach = 51,200 − 48,692 = $2,508.00.
Daily floor = 51,200 × 0.97 = $49,664.00, so room to daily breach = 51,200 − 49,664 = $1,536.00.
The daily floor is higher, so the daily limit is binding today. Under a static rule the overall floor would instead be 50,000 × 0.94 = $47,000.00.
Understanding prop firm drawdown limits
Funded and evaluation accounts define two separate ceilings: a daily loss limit that resets each session and a maximum drawdown measured against a reference balance. Breaching either typically ends the account, which is why the useful number is not either limit on its own but whichever one is closer to the current balance right now. That is the binding limit, and it is the figure this page puts first.
Firms differ in how the reference balance is set. Static drawdown measures from the initial balance, so the floor never moves and every dollar of profit adds directly to the cushion. Trailing drawdown follows the highest balance or equity reached, so the floor rises as the account grows and profit does not accumulate as protection in the same way. The comparison line on this page shows what the floor would be under the other rule, because the difference is often several thousand dollars on the same account and is easy to misjudge from the marketing page alone.
Trailing rules are not standardised, and this is the single most common source of confusion. Some firms trail on closed balance, some on unrealised equity high, and some stop trailing entirely once the account reaches the initial balance plus the drawdown amount. A trail on intraday equity means an open position that goes well in your favour and then gives the move back can permanently raise the floor even though no profit was ever realised. Confirm in writing which definition your firm applies before relying on any number produced here — the account agreement is the authority, not this calculator.
The daily limit works on a shorter clock and resets at a cut-off the firm defines, often 5pm New York time but by no means universally. Because it is measured from the balance at the start of that session rather than from the starting balance of the account, a profitable morning raises the daily floor for the rest of the day on most rule sets, and a losing morning lowers the room remaining without changing the overall floor at all.
Two practical points follow from the arithmetic. First, the binding limit changes through the day and across the life of the account, so a rule of thumb formed in week one is often wrong by week four. Second, the room figures here are gross of costs: commissions, exchange fees and slippage all consume the same cushion, and open positions may or may not count depending on whether the firm evaluates on balance or on equity. Enter your own numbers, but verify the rule text.
Frequently asked questions
What is the difference between static and trailing drawdown?
A static floor is fixed against the starting balance. A trailing floor moves up as the account reaches new highs, so gains raise the level at which the account breaches.
Do unrealised losses count?
It depends on the firm. Some evaluate on equity including open positions, others only on closed trades. Check the rules for your account.
Does this reflect my specific firm's rules?
No. It applies the limits you enter. Always confirm against your provider's written rules.
When does the daily limit reset?
At the firm's defined daily cut-off, which is often 5pm New York time but varies by provider.