# What is Scaling plan?

> A scaling plan is a prop firm's published path for increasing a trader's simulated allocation, profit split or both after they meet defined performance conditions.

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

In a prop firm, a scaling plan rewards traders who keep producing results in the funded stage. A typical plan increases the simulated account size by a set percentage after a number of months or payouts with net profit, sometimes alongside a higher profit split.

Scaling plans usually carry a ceiling, called a maximum allocation, across all of a trader's accounts. The conditions for each step, such as minimum profit, minimum payouts and no rule breaches, need to be written as precisely as the evaluation rules.

Because scaling increases the size of the account the firm pays out on, it raises payout liability for the best traders. Firms that mirror top traders to live markets often link scaling to that decision.

## Why it matters

A scaling plan gives traders a reason to stay with your firm after the first payout, which is where lifetime value comes from. It also concentrates liability on a few accounts. Publish the exact conditions and the ceiling, and use the scaling plan on your site as retention proof, not as a promise of future earnings.