What Is the Profit Target in a Prop Firm Challenge?

The profit target (also called “target” or “profit objective”) is the percentage return you must make on the evaluation account to pass that step of the challenge.

How Is the Profit Target Calculated?

It’s usually a % of the starting balance. Example: On a $100,000 account with an 8% target, you need $8,000 profit while staying within all drawdown rules.

Phase 1 vs. Phase 2 Targets

In 2-step challenges, Phase 1 often has a higher target (e.g. 8%–10%). Phase 2 usually has a lower target (e.g. 4%–5%). This proves you can repeat performance with control, not just spike once.

Why the Profit Target Matters

It defines how fast you can pass the challenge.
It forces you to prove you can trade with consistency, not pure luck.
High targets can push traders to over-leverage, which leads to rule breaks.

Tips for Hitting the Target

Focus on steady gains, not one giant trade.
Protect daily drawdown. If you break risk rules, it doesn’t matter that you were close to target.
Stick to your best setups instead of forcing trades to “finish the target.”

Key Takeaway

The challenge target is the required profit you must generate to qualify for funding. You must reach it and respect all risk rules. Missing either = fail.