Prop firm profit target explained with the exact numbers

A prop firm profit target is the amount of profit you have to produce in an evaluation stage in order to clear it. It is stated as a percentage and calculated from the initial account balance and never from your withdrawable profit and not from the entry fee. At NextGen Funding the figure is 10% in stage one and 5% in stage two on Standard, 8% and 5% on Rapid, and 10% in a single stage on Ace. None of these evaluations has a deadline, and nothing is pressing on you while you reach it. NextGen Funding is backed by Errante, and every figure here comes from its published terms.

How the profit target is calculated

Arithmetic here is simple. Your starting point is where many traders get it wrong.

Turning the percentage into a dollar figure

Multiply the initial account balance by the target percentage. For example, 10% of a $100,000 account is $10,000. On a $25,000 account the same target is $2,500.

That basis is always the initial balance, never the amount you paid for the evaluation and never the profit that will be withdrawable at the end. Keep those three separate from the start, because all three figures exist on your route and mixing them makes the calculation wrong from the ground up.

Profit targets for $5,000 to $200,000 accounts

This table runs that same formula for all three common percentages across every account size.

To find your own figure, locate the account size you chose in the rows and read the column for the percentage your prop firm challenge sets.

Why the target is a percentage and not a fixed amount

If the target were a fixed number, it would be heavy on a small account and trivial on a large one. Expressing it as a percentage keeps the difficulty the same across every size, which is why every serious prop firm states it this way.

Taking a larger account therefore does not make the route easier. You have to produce the same percentage, only on a bigger number. Choose the account size on the volume you actually manage, which means the number you can trade calmly.

What the Standard profit target is

Standard has two stages, and each has its own target, assessed independently of the other.

Stage one on Standard: 10%

Stage one on Standard sets a 10% profit target. On a $50,000 account that comes to $5,000, on $100,000 it is $10,000, and on $200,000 it is $20,000.

That figure alone is not the condition for clearing the stage. It has to come while you respect the other rules of that evaluation, and hitting the target through a risk rule breach never counts as a pass.

Your profit also counts cumulatively and not on one trade. Forty small wins that add to $10,000 clear the same target as one large one, which means you never need a single big entry. Combined results across your trades has to reach the figure, and it does not have to come from a single large entry.

Stage two on Standard: 5%

Stage two sets a 5% profit target. On a $50,000 account it is $2,500, on $100,000 it is $5,000, and on $200,000 it is $10,000.

Put simply, the stage two target is half the stage one target.

Here is the logic behind that reduction. Stage one measures your ability to produce profit and stage two measures the consistency of it. A smaller figure is enough for that, because what matters there is the repetition of the same behaviour.

How much profit clearing Standard takes in total

Those two percentages run one after the other and are not a single combined target. Take a $100,000 account: stage one has a $10,000 target and stage two has a $5,000 target. Each stage counts separately.

How the Rapid and Ace targets differ

These two differ from Standard from two different angles. One sets a lower percentage in stage one, and the other compresses the whole route into a single stage.

Stage one on Rapid: 8%

Stage one on Rapid sets an 8% profit target. For example, that gives $8,000 on a $100,000 account and $4,000 on $50,000.

Standard differs exactly here. Your target drops from 10% to 8%, leaving less distance to cover before clearing stage one.

But that lower figure is only one side of it. Rapid gives you a smaller maximum drawdown in exchange, so your margin for error is smaller too. A closer target does not always mean an easier route.

Stage two on Rapid: 5%

Stage two on Rapid sets a 5% profit target, the same as stage two on Standard. That comes to $5,000 on a $100,000 account, and $10,000 on $200,000.

Ace: 10% in a single stage

Unlike the other two, Ace has only one stage, with a 10% profit target. Working that out gives $10,000 on a $100,000 account.

What that structure gives you is a simpler stage route, not an easier pass. You reach the target once and the evaluation is done, but the risk rules on this evaluation are stricter in exchange.

For the decision, set the two side by side. Ace asks for 10% once, while Standard asks for two stages at 10% and 5%. Ace looks smaller at a glance, and because it comes with less risk room, it is not necessarily the shorter route.

Three evaluations compared at a glance

Standard and Rapid are each a 2-step challenge, and Ace is a 1-step challenge.

What happens after you reach the target

Reaching the figure ends a stage. Nothing more. Three questions come up at exactly this point.

Is there a deadline

No. Trading periods on all three evaluations run without a limit. There is no deadline for reaching the profit target and no penalty for taking longer. One timing condition applies on some evaluations, which is the minimum number of trading days.

No deadline gives you one important advantage. You can wait for high quality setups instead of opening trades to fill a calendar. Rushing to reach the target sooner is the most common reason risk rules get broken.

Does a funded account have a profit target

No. The profit target belongs to the evaluation stage or stages, and once you clear them it no longer applies.

There is no such thing as a profit target on a simulated funded account. What matters there is the withdrawal conditions and the profit distribution rule. Execution continues on MetaTrader 5 (MT5) exactly as it did during the evaluation, and an approved withdrawal request is processed within 24 to 48 hours.

How the 50% profit distribution rule differs

Your profit target says how much profit is needed. A profit distribution rule says how that profit has to have been built.

Under it, no single trading day may have produced more than 50% of your total accumulated profit. So two traders can reach the same figure with one of them satisfying the condition and the other not. This rule applies on funded accounts only, not during an evaluation.

What happens to the target after the account grows

Percentages stay the same and the amount behind them grows with the new account size. That growth comes through the scaling plan and opens on the basis of consistent performance and not by buying a larger account. NextGen Funding is backed by Errante, a broker operating under CySEC and the FSA Seychelles.

This does not apply to the evaluation stage, though. Once you are funded there is no longer a profit target to clear, and what changes as the account grows is your profit amount and the level of the risk limits.

Frequently asked questions

What is a prop firm profit target?

Amount of profit you have to produce in an evaluation stage in order to clear it. It is stated as a percentage and comes off the initial account balance.

How do I convert the percentage into a dollar figure?

Multiply the initial account balance by the target percentage. 10% of a $100,000 account is $10,000.

Is the target calculated from what I paid for the evaluation?

No. That basis is always the initial account balance, never the entry fee and never the profit that will be withdrawable at the end.

What are the profit targets on each evaluation?

10% then 5% on Standard, 8% then 5% on Rapid, and 10% in a single stage on Ace.

What is the stage one target on Standard in dollars?

10% of your account size: $5,000 on a $50,000 account, $10,000 on $100,000 and $20,000 on $200,000.

Why is the stage two target lower?

Because stage one measures your ability to produce profit and stage two measures its consistency. A smaller figure is enough for that, since what matters is the repetition of the same behaviour.

Are the two Standard targets added together?

No. They run one after the other and each stage counts separately. On a $100,000 account it is $10,000 in stage one and then $5,000 in stage two.

Is Rapid easier because its first target is 8%?

Not necessarily. Your target is closer, and Rapid gives you a smaller maximum drawdown, so your margin for error is smaller too.

Is Ace easier because it has one stage?

It is a simpler stage structure. Passing is no easier. You reach 10% once and the evaluation is done, but the risk rules on Ace are stricter.

Does taking a larger account make the target easier?

No. Targets are percentages, and you produce the same proportion on a bigger number. Choose the account size on the volume you actually manage.

Does the profit have to come from one trade?

No. It counts cumulatively, and the combined result of your trades has to reach the figure.

Does hitting the target guarantee a pass?

No. You have to reach the target while respecting the other rules of that evaluation. Reaching it through a risk rule breach does not count as a pass.

Is there a deadline for reaching the target?

No. Trading periods on all three evaluations is unlimited and there is no penalty for taking longer. One timing condition applies, which is the minimum number of trading days on some evaluations.

Why does the absence of a deadline matter?

Because you can wait for high quality setups instead of opening trades to fill a calendar. Rushing to reach the target sooner is the most common reason risk rules get broken.

Is there a profit target on a funded account?

No. A profit target belongs to the evaluation only. Nothing replaces it afterwards. On a funded account what matters is the withdrawal conditions and the profit distribution rule.

How is the distribution rule different from the profit target?

Your target says how much profit is needed. A distribution rule says how it has to have been built: no single trading day may account for more than 50% of your total accumulated profit. It applies on funded accounts only.

What happens to the target when my account grows?

Percentages stay the same and the amount grows with the account size. That said, once you are funded there is no target to clear, and what changes with growth is your profit amount and the level of the risk limits.

Am I trading real money while reaching the target?

No. Every account, evaluation and funded alike, is a demo account with fictitious funds and all trading takes place in a simulated environment. Only the profit you withdraw is real.

All accounts we provide to our clients are demo accounts with fictitious funds and any trading is in a simulated environment only.