Payout split
Also called Profit split, Profit share, Prop firm split, Profit split ratio
A payout split is the share of trading profit a prop firm pays you versus the share it keeps, written as two numbers such as 80/20. It applies only to profit you withdraw from a funded account.
The split only touches profit, and only at the moment you request a payout. Traders often pick a firm by this one number, yet the rules that decide whether a payout happens at all usually move more money than a few points of split.
What the two numbers in a payout split mean
A payout split is written with the trader's share first. 80/20 means you receive 80% of the withdrawable profit and the firm keeps 20%. A prop firm (proprietary trading firm) is a company that lets you trade its account after you pass an evaluation, which you normally pay a fee to take.
The split is not a cost per trade like a spread or a commission. Those are charged on every order. The split is taken once, from the net profit left after those costs. The bar below shows where each part of the account's profit goes, including a profit buffer that some firms ask you to leave in the account.
If you trade your own money with a retail broker, there is no split. You keep all profit after trading costs.
Working out your share of a payout in dollars
The figures here are an illustrative example. You trade a $100,000 funded account with an 80/20 split, you paid a $500 evaluation fee, and the balance stands at $104,000 when you request a payout. The calculation below walks through it.
The headline split says 80%. After the fee, your first payout is really 67.5% of the profit you made. The fee is paid once, so later payouts on the same account sit at the full 80%.
Two formulas you can copy:
- Your payout = profit × your split percentage.
- Profit needed to earn back the fee = fee ÷ your split percentage. Here that is $500 ÷ 80% = $625.
Comparing a higher split against a higher fee
A bigger split does not always pay more if it comes with a bigger fee. Take two offers, again as illustrative figures. Firm A pays 90/10 and charges a $600 fee. Firm B pays 80/20 and charges a $300 fee. Call your profit before the first payout P.
- Firm A leaves you 0.9P − $600.
- Firm B leaves you 0.8P − $300.
- Set them equal: 0.9P − 600 = 0.8P − 300.
- Move the terms: 0.1P = 300, so P = $3,000.
The chart below checks the answer at three profit levels.
The rule: if you expect less than $3,000 profit before your first payout, the lower split with the lower fee pays more. Above $3,000, the higher split wins. For any two offers, break-even profit = fee difference ÷ split difference. Here that is $300 ÷ 10% = $3,000.
How the split changes the value of each trade
In the same example, a trade that adds $500 to the account adds $400 to your next payout. A trade that loses $500 removes $400 from your pending payout, but it uses the full $500 of your drawdown limit, the maximum loss the firm allows before it closes the account.
That gap is the common misread: sizing trades by "my share" of the result. Use this rule instead. Size every position against the drawdown limit in full account dollars, and use the split only to estimate what you take home.
On the same $4,000 profit, moving from 80/20 to 90/10 is worth $400. Breaking one rule that voids the payout costs the whole $3,200. So if a firm offers a higher split with a tighter drawdown or stricter trading rules, compare the rules first and the split second.
Where you find the split and the payout figure
Your trading platform shows the whole account's profit, before any split. It has no setting for the split, and you cannot change it there.
The split is set in the firm's account agreement. The firm's trader dashboard applies it, usually on the payout request page, which shows the withdrawable profit and your share.
If you are looking for one named firm's split, read its current rules page for your exact account type. Firms publish different splits for different plans and change them over time, so a figure quoted anywhere else may be out of date.
Checks to run before you count on a payout
- Fixed or rising split. Some firms raise your share after several payouts or when the account is scaled up. Note which payout the higher number starts from.
- Minimum payout and timing. Check the smallest amount you can withdraw and how often you can request it.
- Profit buffer. If the firm requires you to leave some profit in the account, the split applies only to the amount above that buffer.
- Consistency rule. A cap on how much of your profit may come from one day can delay or reduce a payout.
- Withdrawal fees. Transfer costs come off your share after the split, not before.
- Fee refund. If the evaluation fee is refunded with the first payout, your effective share returns to the headline split.
- Keep a copy. Save the terms on the day you buy the evaluation, so you know which split you agreed to.
FAQ
Do I get a payout split on profit made during the evaluation phase?
Usually not. The evaluation is a test with a profit target, and the split starts once you trade the funded account. A few firms add a share of evaluation profit to the first payout, so check the terms of your plan.
Do I pay tax on my share of a payout?
That depends on where you live. Firms generally pay your share without deducting tax, which leaves the reporting to you. Keep every payout statement and ask a local tax adviser how this income is treated.