The profit target is the minimum return required to pass an evaluation phase. Phase 1 typically requires 6-8% profit, Phase 2 requires 4-5%. On a $100K account with 8% Phase 1 target, you need to earn $8,000. Most traders focus too much on reaching the target and not enough on protecting against drawdown. Over 60% of challenge failures are from drawdown breaches, not failure to reach profit targets.