How do I calculate the break-even point for a prop firm?

Step by step:

1. Average sale price after discounts.
2. Variable costs per sale: payment fees, affiliate commission, platform cost per account, KYC averaged per sale.
3. Expected payout per sale: pass rate × share who reach a payout × average payout. Use cautious assumptions.
4. Contribution per sale = price − variable costs − expected payout.
5. Break-even sales = monthly fixed costs ÷ contribution per sale.

Illustrative example: if contribution per sale is $40 and fixed costs are $4,000 a month, you need 100 sales a month to break even. If the contribution is negative, more sales make losses bigger, which means pricing or rules need to change. Platform pricing affects step 2: on PropExecutor it is a fixed, prepaid cost per account, so it is easy to put into the model.

Remember the payout lag

Payouts arrive weeks after sales, so early months can look profitable before payouts catch up. Calculate break-even on steady-state assumptions, not on the first month's cash.