Understanding Prop Firm Income
Your monthly income from prop firm trading depends on two factors: account size and monthly return percentage. A trader making 5% monthly on a $25k account earns less than a trader making 3% on a $100k account. Understanding these variables helps you set realistic income expectations.
Income Calculation Formula
Example: $50,000 account × 3% monthly return × 80% profit share = $1,200/month
Realistic Return Percentages
Conservative Trading (1-2% monthly):
- Very safe, low drawdown risk
- $50k account = $400-800/month
- $100k account = $800-1,600/month
- Highly sustainable long-term
Moderate Trading (3-5% monthly):
- Balanced approach, reasonable risk
- $50k account = $1,200-2,000/month
- $100k account = $2,400-4,000/month
- Most professional traders target this range
Aggressive Trading (6-10% monthly):
- Higher returns but increased drawdown risk
- $50k account = $2,400-4,000/month
- $100k account = $4,800-8,000/month
- Difficult to maintain consistently
Income Scenarios by Account Size
Beginner: $25k account, 3% monthly return
- Monthly income: $600 (80% payout)
- Annual income: $7,200
- Time to scale to $50k: 3-6 months
Intermediate: $100k account, 3% monthly return
- Monthly income: $2,400 (80% payout)
- Annual income: $28,800
- Time to scale to $250k: 6-12 months
Advanced: $250k account, 4% monthly return
- Monthly income: $8,000 (80% payout)
- Annual income: $96,000
- Time to scale to $500k+: 12-18 months
Elite: $500k account, 3% monthly return
- Monthly income: $12,000 (80% payout)
- Annual income: $144,000
- Income potential: Unlimited with multiple accounts
Multiple Account Strategy
Many traders don't wait for scaling. Instead, they trade multiple funded accounts:
- Trade 2x $50k accounts = $1,200/month potential at 3% returns
- Trade 4x $50k accounts = $2,400/month potential
- Trade 2x $100k + 2x $50k = $3,600/month potential
- Diversifies risk across multiple firms/accounts
Income Growth Timeline
Realistic path from beginner to $10k/month income:
| Year | Account Sizes | Monthly Income (3%) |
| Year 1 | 1x $25k | $600 |
| Year 1 (Month 6) | 1x $50k | $1,200 |
| Year 1.5 | 1x $100k | $2,400 |
| Year 2 | 1x $250k | $6,000 |
| Year 3 | 1x $250k + 1x $500k | $18,000 |
Realistic Income Expectations
- First 6 months: $300-1,000/month (building foundation)
- Months 6-12: $1,000-3,000/month (first scaling)
- Year 2: $3,000-8,000/month (second scaling)
- Year 3+: $8,000-15,000+/month (multiple accounts)
FAQ
A: Yes, but it takes time. Most traders need 2-3 years of consistency and multiple accounts to reach this level.
A: Most traders make $2,000-5,000/month on their first funded account. Top traders make $10,000+/month.