📉 FTMO Drawdown Calculator
Calculate Your Daily & Maximum Loss Limits Based on Official FTMO Rules
Max Loss Limit (1-Step) = Highest Balance at any previous 00:00 CE(S)T (or Initial Capital, whichever higher) − (Initial Capital × Max Loss %). Max Loss Limit (2-Step) is static: Initial Capital − (Initial Capital × Max Loss %). Reset: 00:00 CE(S)T.
Leave “Highest Balance” empty on Day 1, or if it’s lower than your Initial Capital — Initial Capital will be used instead. Not needed for 2-Step (Max Loss is static).
Getting a breach notice from FTMO because you miscalculated your drawdown limit is one of the most frustrating ways to lose a funded account. It happens far more often than it should not because traders take reckless risks, but because they misunderstand exactly how FTMO's Max Daily Loss and Max Loss rules work. Our FTMO Drawdown Calculator was built to remove that guesswork completely, giving you an exact dollar figure for both limits based on FTMO's official trading objectives.
What Is an FTMO Drawdown Calculator
An FTMO Drawdown Calculator is a free tool that tells you the precise equity level you must stay above, both for today and for the entire duration of your challenge or funded account. Instead of manually working out percentages and trailing balances in your head often under the pressure of an open trade this calculator does the math for you instantly and accurately. It's built specifically around FTMO's own rules, which differ depending on whether you're on a 1-Step Challenge or a 2-Step Challenge (Challenge + Verification), so the numbers you get back genuinely reflect what FTMO's system will enforce on your account.
Why Understanding FTMO's Drawdown Rules Is So Important
FTMO evaluates traders on two separate loss thresholds, and mixing them up is one of the most common and costly mistakes new challenge participants make.
1. Max Daily Loss resets every day at 00:00 CE(S)T and is calculated as a percentage of your Initial Capital, subtracted from your account balance at that daily reset point. This means your daily loss limit is not fixed; it moves depending on what your balance was at the start of that specific trading day.
2. Max Loss is the overall account-wide threshold you can never breach, regardless of how many days you've been trading. On a 1-Step account, this limit is trailing meaning it follows the highest balance your account has ever recorded at a daily 00:00 reset. On a 2-Step account, this limit is static, meaning it's always calculated from your original Initial Capital and never moves, even if your balance grows significantly.
The difference between a trailing and a static Max Loss is huge. Traders who assume their 1-Step account works like a 2-Step account (or vice versa) often end up either being far too conservative, missing profitable opportunities, or far too aggressive, breaching a limit they didn't realize had already tightened.
The Official FTMO Formulas Behind This Calculator
This calculator is built directly around FTMO's published trading objectives, using the following logic Max Daily Loss Limit = Balance at Today's 00:00 CE(S)T − (Initial Capital × Daily Loss %) Max Loss Limit (1-Step Accounts) = Highest Balance Recorded at Any Previous 00:00 CE(S)T (or Initial Capital, whichever is higher) − (Initial Capital × Max Loss %) Max Loss Limit (2-Step Accounts) = Initial Capital − (Initial Capital × Max Loss %) By default, FTMO applies a 3% Max Daily Loss and 10% Max Loss on 1-Step accounts, and a 5% Max Daily Loss and 10% Max Loss on 2-Step accounts. These percentage fields are fully editable in the calculator in case FTMO updates its rules or you're using a custom account configuration.
How to Use the FTMO Drawdown Calculator
Step 1: Select Your Account Type Choose between 1-Step (3% Daily / 10% Max) or 2-Step (5% Daily / 10% Max). The percentage fields auto-fill based on your selection, though you can adjust them manually if needed.
Step 2: Enter Your Initial Simulated Capital This is the starting size of your account for example, $100,000. All percentage-based calculations are anchored to this figure.
Step 3: Enter Your Balance at Today's 00:00 CE(S)T This is your account balance exactly at the most recent daily reset. It's used to calculate your Max Daily Loss Limit for the current trading day.
Step 4: Enter Your Highest Balance at Any Previous 00:00 (1-Step Only) If you're on a 1-Step account, enter the highest balance your account has ever recorded at a daily reset. If this is your first trading day, or your account balance hasn't grown yet, you can leave this blank the calculator will automatically use your Initial Capital instead.
Step 5: Click Calculate The tool instantly displays your Max Daily Loss Limit and your Max Loss Limit, along with a breakdown of exactly how much dollar-value cushion you have in each category.
Why This Matters for Every FTMO Trader
Avoid Accidental Breaches The single biggest use case for this calculator is preventing accidental account breaches. Many traders lose funded accounts not because their strategy failed, but because they misjudged how close they were to a limit during a volatile session. Knowing your exact dollar limit before you open a trade removes that risk entirely. Plan Position Sizes With Confidence Once you know your precise daily and overall loss ceiling, you can size your positions with much greater confidence. Instead of guessing how much room you have, you can calculate exactly how many pips or points of adverse movement your account can absorb before hitting a limit.
Understand the Trailing vs. Static Difference Because this calculator clearly separates the trailing logic (1-Step) from the static logic (2-Step), it helps traders internalize one of the most misunderstood aspects of FTMO's rule set. This alone can prevent costly mistakes for traders moving between different account types. Track Your Limits Daily Since the Max Daily Loss resets every day, your safe trading range changes daily too. Running your numbers through this calculator each morning, right after the 00:00 CE(S)T reset, takes just a few seconds and keeps you fully aligned with FTMO's live requirements. Useful for Every Stage of the Challenge Whether you're in Phase 1, Phase 2 (Verification), or already trading a live funded FTMO Account, the same drawdown logic applies. This calculator is equally useful throughout every stage of your FTMO journey.
Who Should Use This Calculator
- New FTMO Challenge participants who want to fully understand their loss limits before placing their first trade
- Funded FTMO traders who need to track a trailing Max Loss limit as their account balance grows
- Risk managers and trading mentors teaching students how proprietary firm loss rules actually work
- Multi-account traders managing several FTMO Challenges or funded accounts simultaneously, where manually tracking different balances and reset points becomes error-prone
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Frequently Asked Questions (FAQs)
Does the Max Daily Loss reset at midnight my local time?
No. FTMO resets the Max Daily Loss at 00:00 CE(S)T (Central European Time), not your local time zone. Make sure to convert this to your own time zone so you always know exactly when your daily limit refreshes.
Is the Max Loss limit the same for 1-Step and 2-Step FTMO accounts?
Both use a 10% Max Loss percentage by default, but the way it's calculated differs. On a 1-Step account, the Max Loss is trailing and follows your highest recorded 00:00 balance. On a 2-Step account, it's static and always based on your Initial Capital, regardless of how much your balance has grown.
What happens if I don't know my highest previous 00:00 balance?
If you're unsure or it's your first day of trading, simply leave the field blank. The calculator will automatically default to using your Initial Capital, since that's the minimum baseline FTMO uses for the trailing Max Loss calculation.