Every prop account has a maximum drawdown line. Most failures happen because traders only know the percentage, not the dollar level where the account actually breaches. This calculator converts the rule into hard numbers against your current equity.
Max drawdown calculator
Use your day-start balance if the rule is “trailing from starting balance”, or your highest recorded equity/high-water mark if the firm uses a trailing drawdown.
The formula behind it
Static (fixed) drawdown: breach level = starting balance − max drawdown %. It never moves. Trailing drawdown: breach level = your highest equity or high-water mark − max drawdown %, which means the floor follows your best equity up (and in some firms, all the way to the profit target). Always check which type your firm uses before you plan trade sizes.
Worked example
$100,000 account, 10% max drawdown: your hard floor is $90,000 no matter how much profit you make on a static rule. On a trailing equity rule, if you run the account to $112,000, your floor moves to $102,000 and one bad session can put you back near breach, even while “in profit”. The drawdown rules guide walks through both types with real numbers.
FAQ
What is the difference between total and daily drawdown?
Total drawdown is measured from the starting balance (or high-water mark) across the whole life of the account. Daily drawdown resets every trading day and is usually measured from your equity or balance at the daily reset time. Check both with the daily loss limit calculator.
Does open floating loss count toward drawdown?
On most platforms drawdown is measured on equity (balance plus floating P/L), so an open losing trade erodes your buffer even before you close it. Trade as if the floor is watching your equity tick by tick, because it is.