Profit Factor Calculator
Evaluate strategy profitability by comparing gross profits to gross losses.
| Metric | Value |
|---|---|
| Gross Wins | $1800.00 |
| Gross Losses | $700.00 |
| Average Win | $600.00 |
| Average Loss | $350.00 |
| Win/Loss Ratio | 1.50 |
Visual Analysis
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What is this tool?
Profit Factor is the ratio of gross profits to gross losses in a trading system. Formula: Profit Factor = Gross Wins / Gross Losses. A profit factor above 1.0 means the system is profitable. Expectancy per trade = (Win Rate x Avg Win) - (Loss Rate x Avg Loss).
How to use
- 1
Enter wins and losses
Input total number of winning and losing trades.
- 2
Set average amounts
Enter average win and average loss amounts.
- 3
Enter transaction cost
Set the cost per trade including fees and slippage.
- 4
View results
See profit factor, expectancy, and system rating.
Frequently Asked Questions
What is a good Profit Factor?
Above 1.0 means profitable. 1.5-2.0 is good, 2.0+ is excellent. Always consider trade count alongside profit factor.
What is trading expectancy?
Expectancy is the average amount you can expect to win or lose per trade. Positive expectancy means long-term profitability.
How to improve Profit Factor?
Improve risk-reward ratio by widening take profits or tightening stops. Also reduce transaction costs.