# What is Pass rate?

> Pass rate is the share of prop firm evaluations that end in a pass rather than a breach, measured per phase or end to end; it drives payout liability.

- Source: https://pipvalley.com/glossary/pass-rate
- Publisher: PipValley - web design studio for prop trading firms
- Updated: 2026-10-03

In a prop firm, pass rate is usually calculated as evaluations passed divided by evaluations that ended, over a period. It can be measured per phase, end to end from purchase to funded stage, or per trader rather than per account, so any figure is meaningless without its definition.

Pass rate is shaped by the rule set (target, loss limits, drawdown type, time limit), the trader audience the marketing attracts, and how many accounts a typical trader buys. Firms change it mainly by changing rules or audience, not by tightening enforcement.

Published pass rates in the industry are mostly self-reported and use different definitions. Treat any number you see as the firm's own claim unless the method is shown.

## Why it matters

Pass rate is the bridge between fee revenue and payout liability; your break-even depends on it. Track it by program, account size and acquisition channel. If you publish it on your site, define it precisely and update it on a schedule, because a stale or loosely defined pass rate is a marketing claim you may have to defend.