Profit Factor Calculator for Trading

Your numbers

Gross profit, all winning trades ($) Gross loss, all losing trades ($)

Enter your numbers.

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How to use the profit factor calculator

Choose to enter gross profit and gross loss, or your win rate and reward : risk.
Type the amounts as positive numbers, ideally after costs.
Read the profit factor, the net profit and what the number means.

The profit factor formula

Profit factor = gross profit ÷ gross loss

Add up every winning trade (gross profit) and every losing trade as a positive number (gross loss), then divide. From a win rate W and a reward : risk R the same number is W × R ÷ (1 − W). Count costs in: use net results after spread, commission and swap, or a good-looking profit factor can hide a losing method.

Worked example

Gross profit $15,000 and gross loss $10,000: profit factor = 15,000 ÷ 10,000 = 1.50, net profit +$5,000.
A 40% win rate at 1 : 2 gives 0.40 × 2 ÷ 0.60 = 1.33.
The same 40% at 1 : 1 gives 0.67: below 1, the method loses $1 for every $1.50 it risks to win $1.

What profit factor means: how to read it

Profit factor	What it says
below 1.0	Losing: the losses are bigger than the wins.
1.0 to 1.25	A thin edge: costs or a few bad trades can wipe it out.
1.25 to 1.75	A solid edge for most discretionary traders.
1.75 to 3.0	A strong edge, if it holds over 100 trades or more.
above 3.0	Excellent, or a small sample or one outsized win: check the number of trades.

Profit factor hides the size of the trades and how bumpy the equity curve is. Read it next to expectancy, win rate and risk of ruin. The article profit factor explained goes deeper, and win rate vs risk-reward shows how the two trade off.

Your profit factor per setup, after costs

ICC Zillas works out profit factor, expectancy and win rate from your synced or imported trades, with commission and swap included. 30-day free trial, no card needed.

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The calculator uses the numbers you type. It is not financial advice. Trading with leverage carries a high risk of loss.

Questions

How do you calculate profit factor?

Divide the total of all winning trades by the total of all losing trades (as a positive number). $15,000 won and $10,000 lost give a profit factor of 1.5.

What is a good profit factor?

Above 1 makes money. 1.25 to 1.75 is solid for most traders, and above 2 is strong if it comes from enough trades.

What is the difference between profit factor and expectancy?

Profit factor is a ratio of wins to losses; expectancy is the average money or R per trade. Two methods can share a profit factor and have very different expectancy if one trades bigger.

Can profit factor be calculated from win rate?

Yes, with the reward : risk too: win rate × reward : risk ÷ loss rate. 50% at 1 : 1.5 gives 1.5.

Is my data sent anywhere?

No. The calculator runs in your browser and does not send or store what you type.

Profit factor calculator