Expected Value (EV) Calculator

Collapse pass rate, funded lifetime, blowup risk, and true cost into one number. Is this challenge +EV or −EV for you?

90% SPLIT

100% of first $25K, then 90/10

PROFIT TARGET
$6,000
CHALLENGE FEE
$207
MONTHLY FEES
$124

Your Assumptions

10%
$4,000/mo
20%/mo
12 months

Take-home per month = $4,000 × 90% = $3,600/mo. Expected months funded over 12 months at 20% monthly blowup = 4.7 months.

Attempt Plan

Expected Value
+$1,178
STRONGLY +EV
Break-even pass rate: 2.6% — you're above it.
EV vs. Pass ProbabilityDashed line = your break-even
EXPECTED PROFIT
$1,676
EXP. REFUND
$0
TRUE COST
$498
EXP. MONTHS FUNDED
4.7
TAKE-HOME / MO
$3,600
VERDICT
STRONGLY +EV
EV Breakdown
Challenge fees
2 × $207
-$414
Activation (conditional on pass)
10% × $140
-$14
Monthly platform/data fees
10% × $124/mo × 5.7 mo
-$70
Expected profit if funded
10% × $16,763
+$1,676
Expected Value+$1,178

How It Works

Formula

EV = p_pass × E[profit | funded] + p_pass × refund − true_cost
E[profit | funded] = monthly_take_home × E[months funded]
E[months funded] = (1 − (1 − p_blowup)^horizon) / p_blowup
true_cost = (attempts × challenge) + (resets × reset_fee) + p_pass × (activation + monthly_fees × (months_to_first_payout + E[months funded]))

Expected value collapses four moving parts into one number. Most traders evaluate challenges on sticker price and pass rate alone. That misses the two things that actually move EV the most: how long you stay funded, and how much of the real cost is hidden in monthly fees and activation. EV forces all four variables — pass probability, funded lifetime, blowup risk, and true cost — into the same dollar unit so you can compare apples to apples.

The expected months funded term is where intuition breaks down. At your current 20% monthly blowup rate over a 12-month horizon, you don't get 12 months of profit — you get about 4.7 months. The geometric-survival formula compounds the blowup probability each month, so your realistic funded lifetime is almost always dramatically shorter than your time horizon. This is why firms with seemingly generous conditions can still be −EV for volatile strategies.

Break-even pass rate is the single most useful number on this page. It answers: given your monthly profit expectation, blowup risk, and the firm's fees, what pass probability makes this a zero-expected-value bet? If your honest self-assessed pass rate is below that number, the challenge is negative EV. Industry data on actual pass rates (7-14%) gives you a sanity check — if your break-even is above 15%, you need a very good reason to believe you're in the top decile of traders.

Refunds change the math asymmetrically. FTMO, FundedNext, and E8 refund the challenge fee on first payout — but only if you pass and actually reach a payout. In this calculator we treat refund as conditional on passing, which is optimistic: industry data suggests many funded traders never hit a payout. For a conservative view, model refund as p_pass × p_reach_payout × refund — adjust the refund input down if you want to reflect that.

What this tool does NOT model: consistency-rule disqualification after passing, payout caps, tiered profit splits (shown as flat here — e.g. Apex's 100% of first $25K then 90/10 is approximated at 90%), scaling plan compounding, or the probability that you'll reset mid-challenge. Treat the output as a directional estimate, not a precise forecast — the break-even pass rate and the sensitivity chart shape are more reliable than the headline EV dollar figure.

Reading the Numbers

$
Expected Value
Probability-weighted dollar outcome. A single sample (one real challenge) won't land on this number — but over many attempts, your average result converges here.
Break-Even Pass Rate
The minimum pass probability that makes EV zero. Below it, the challenge is -EV. Above it, +EV. Compare to industry baseline (7-14%) as a reality check.
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Monthly Blowup Probability
Probability you lose the funded account in any given month. Drives the expected-months-funded term and therefore expected profit. Even 15-20% monthly cuts expected lifetime in half vs a 12-month horizon.
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Sensitivity Chart
Shows EV across every pass rate from 1% to 95%. The slope tells you how much better or worse the outcome gets per % of pass rate improvement. Steep curve = strategy improvement pays off massively.
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Refund
Some firms refund the challenge fee on first payout. Modelled as p_pass × refund here, which overstates it slightly since not all passers reach payout. Worth $50-900+ on +EV setups.

Next Steps

EV is only as good as its inputs. The pass probability number is the one most people get wrong — use the Monte Carlo Pass Probability calculator to derive one from your actual win rate and risk:reward rather than guessing. The True Cost calculator gives you firm-specific fee totals to plug back into this model. And if your EV sits close to zero, the Trailing Drawdown Visualizer shows how the firm's drawdown mechanics change your realistic blowup probability.

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Filter and compare every prop firm by drawdown type, profit split, consistency rules, account size, and true cost. Shareable results.
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Trailing Drawdown VisualizerRefine blowup risk
See how each firm's drawdown type would have treated your actual trading sequence. Informs the monthly blowup probability input on this calculator.
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True Cost CalculatorRefine fees
The full all-in cost of a challenge — resets, activation, platform, data. Plug the output into this calculator's fee fields for a sharper EV.
Educational purposes only — verify all rules and fees at the firm's website before purchasing.
Fee defaults are baseline estimates and may not reflect current promotions. Last verified: April 2026.
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