What this calculator does
Many funded-account challenges set a maximum loss for each trading day. If your losses for the day reach that amount, the attempt ends or the account is locked, depending on the firm. The rule is simple, but the number that matters in practice is smaller: how many full stop-outs fit before you get there, given what you have already made or lost today.
Enter your account size, the daily limit, your risk per trade and your profit or loss so far today. The calculator turns them into a dollar limit, the budget still available, the number of full losses that reach the limit and a stop-trading balance of your own choosing.
How to read the results
- Budget left today. Equity minus the breach level. Equity includes open (floating) profit or loss, because many firms measure the limit on equity. Enter 0 for open P&L if your firm counts only closed trades.
- Losses to the limit. The number of full stop-outs, each costing your risk per trade plus costs, that use up the budget left. The last loss in that count is the one that reaches the limit, so you can take one fewer and stay inside.
- Stop-trading balance. The balance at which you stop for the day under your own rule, for example after using 60% of the limit. This is a personal rule, not a firm rule.
- Risk per trade that survives a losing streak. The largest risk per trade for which a chosen number of losses in a row still leaves you inside the limit, with room for exactly one more loss to breach it.
What it assumes
Firms measure the daily limit in different ways: from the account size or from the balance at the start of the day, in closed or floating terms, with a reset at midnight in some time zone. Pick the basis that matches your firm's current rules in the selector above. Some firms measure from the day's highest equity, which this calculator does not model. Losses are assumed to cost exactly the risk you entered, so slippage and gaps can make a real loss larger.
The math
The point of the last line is that risk per trade and the number of trades you can afford to lose in a day are the same decision. Choosing 2% instead of 1% on this account halves the losses that fit, from 5 to 3.
Worked examples
A fresh day at 1% and at 2% risk
A $100,000 account, a 5% daily limit measured from the account size, so the limit is $5,000 and the breach level is $95,000.
| Risk per trade | Cost of a full loss | Losses to the limit | Losses that leave you inside |
|---|---|---|---|
| 1% | $1,000 | 5 | 4 |
| 2% | $2,000 | 3 | 2 |
Doubling the risk from 1% to 2% cuts the room from 4 losses to 2. Three losing trades in a row is an ordinary event for many strategies, which is why 2% leaves little margin on a 5% daily limit.
Part way through a bad day
Same account and 1% risk, but you have already lost $1,500 and then $3,000 on two different days.
| Lost so far today | Budget left | Full losses to the limit | Your 60% stop-trading balance |
|---|---|---|---|
| $1,500 | $3,500 | 4 | $97,000 |
| $3,000 | $2,000 | 2 | $97,000 |
After a $3,000 loss the budget is $2,000, so the 2nd full loss reaches the limit. The stop-trading balance of $97,000 is already behind you at that point, which is the purpose of setting one in advance.
The limit measured from the start-of-day balance
If the account is at $102,000 at the start of the day and the firm measures a 5% limit from that balance, the limit is $5,100 and the breach level is $96,900.
That is $100 more room than the account-size version, so at 1% risk of $100,000 the limit is reached on the 6th full loss instead of the 5th. Read your firm's current terms to see which basis applies.
Frequently asked questions
How is a daily loss limit calculated?
It is the limit percent times a base amount. For some firms the base is the account size, for others it is the balance or equity at the start of the day. The breach level is the start-of-day balance minus that amount. Choose the basis in the calculator that matches your firm's current rules, and check how it treats floating profit and loss.
Do open trades count towards the daily loss limit?
Often they do, because many rules are measured on equity. A trade that is down by the limit amount can end the day before you close it. Enter your open profit or loss in the calculator to see the effect, or enter 0 if your firm counts only closed trades.
What risk per trade keeps me away from the daily limit?
It depends on how many losses in a row you want to survive. With $5,000 of budget, surviving 3 losses with room for a 4th means risking at most $1,250 per trade, which is 1.25% of a $100,000 account. The table in the calculator shows the same figure for 1 to 6 losses.
Should I stop trading before I reach the limit?
Many traders set a personal stop-trading line well inside the firm's limit, so one more bad trade cannot end the attempt. The calculator marks a stop-trading balance from the share of the limit you choose. It is your own rule and works best when it is written down before the day starts.
Is the daily loss limit the same as the maximum drawdown?
No. The daily limit resets each trading day. The maximum drawdown is a separate, usually larger limit on the account as a whole, and can be static or trailing. You can hit either one first. The trailing drawdown calculator on this site works out the floor for the second rule.
Does this calculator use my firm's rules?
No. It has no built-in rules from any firm. You enter the limit and its basis yourself, so it stays correct when a firm changes terms. Always read the current rules of the firm you trade with. This page is educational and is not affiliated with any prop firm.
Plan the day before the first trade.
A loss budget turns into a trade count only when risk per trade is fixed. Clean entries and exits make that risk easier to keep.
Guides that explain it
Last updated November 2026. For education only. Not financial advice. Results depend on your inputs and cannot predict future performance.