How to read a prop firm profit split

The profit split is the number every trader looks at first, yet most read it wrong.

A split like 80/20 means the firm keeps 20% of your profits. On a $2,000 monthly profit that is $400 to the firm and $1,600 to you. Sounds fair — until you factor in what the account actually costs.

Two firms offering the same split can still be miles apart once you add challenge fees, resets and monthly costs. A 90/10 split on a $300 challenge is worse value than a 75/25 split on a $150 challenge if you fail often.

The real question is how much of your total invested capital you get back in payouts. Track every fee you pay and every payout you receive, then divide. That ratio, not the headline split, tells you which firm is worth your money.