Free trading calculator
Profit Factor Calculator
Compare total winning dollars with total losing dollars to understand the historical margin in your trading results.
Profit factor inputs
Enter your trading totals
Profit factor
1.5
Strong historical result
- Net profit
- $4,000.00
- Average net per trade
- $40.00
- Gross profit share
- 60%
How it works
Profit factor compares gross profits with gross losses
1. Add gross profit
Enter the total profit from all winning trades in the sample.
2. Add gross loss
Enter the absolute total loss from all losing trades.
3. Compare the ratio
Divide gross profit by gross loss to calculate profit factor.
Profit factor formula
Profit factor = gross profit ÷ gross loss
A profit factor above 1 means gross profits exceeded gross losses over the selected sample.
Example
- $12,000 gross profit
- $8,000 gross loss
- 1.50 profit factor
- $4,000 net profit
- $40 average net result over 100 trades
What is a good profit factor?
A profit factor above 1 indicates positive gross performance before considering costs. A larger value provides more historical margin between profits and losses.
Profit factor should not be judged alone. Sample size, drawdown, trade frequency, market conditions, position sizing, and consistency all affect how useful the number is.
Important limitations
Profit factor can be distorted by a small number of large winners, a limited sample, excluded fees, or changing position sizes.
Historical profit factor does not predict future results. This tool is educational and is not financial advice.
Measure more than one headline number
Track profit factor across setups, symbols, and accounts.
TradeStaxx helps connect profit factor with the decisions and trading segments behind the result.