Free trading tools

    Profit factor calculator.

    One number that tells you whether your strategy makes or loses money. Enter your total gross profit and gross loss - and see exactly how many dollars you earn for every dollar you give back.

    YOUR RESULTS
    Profit 62%Loss 38%
    $13k
    $7.8k

    Enter gross loss as a positive number. Most sustainable systems sit between 1.5 and 3.0 - much higher can signal a small sample or curve-fitting.

    PROFIT FACTOR
    1.60× return on losses
    Profitable, sustainable system
    Gross profit$12,500
    Gross loss$7,800
    Net profit$4,700
    StrengthBreakeven at 1.0
    01.03.0+
    WHY IT MATTERS

    One ratio, whole picture.

    Unlike win rate alone, profit factor accounts for the size of your wins and losses - not just how often you win. A profit factor of 2.0 means you earn $2 for every $1 you give back.

    01

    Grade a strategy in one glance

    Below 1.0 means you're losing money, 1.0 is breakeven, and 1.5 to 2.0 is a solid, sustainable system. The number captures both the frequency and the magnitude of your results in a single figure.

    02

    Be skeptical of sky-high numbers

    A profit factor above 3.0 is exceptional - but often a warning sign too. It can come from too few trades or one or two oversized winners, so verify it against a larger sample before you trust it.

    03

    Pair it with expectancy

    Profit factor tells you dollars earned per dollar lost; expectancy tells you the average profit per trade. Reading them together gives a far more complete view of strategy quality than either does alone.

    THE FORMULA

    Profit factor = Gross profit ÷ Gross loss

    PF = Gross profit
        ÷ Gross loss
    WORKED EXAMPLE
    Winning trades this quarter$12,500
    Losing trades this quarter$7,800
    Profit factor1.60

    For every $1 lost you earned $1.60 - a solid, sustainable system with room to improve.

    Profit factor, answered.

    What is the profit factor in trading?
    Profit factor is the ratio of total gross profits to total gross losses. A profit factor of 2.0 means you've earned $2 for every $1 lost. It's one of the simplest and most useful metrics for evaluating whether a trading strategy is worth continuing.
    What is a good profit factor?
    A profit factor above 1.0 means you're net profitable. Generally, 1.5–2.0 is considered good, 2.0–3.0 is excellent, and above 3.0 is exceptional (and worth verifying with a larger sample size, as it may indicate curve-fitting or a small trade count).
    How is profit factor different from expectancy?
    Profit factor is a ratio (gross profits ÷ gross losses), while expectancy is a dollar amount per trade. Profit factor tells you how many dollars you earn per dollar lost; expectancy tells you the average profit per trade. Both measure profitability but from different angles - using them together gives a more complete picture.
    Can profit factor be misleading?
    Yes - a very high profit factor from a small number of trades may not be statistically significant. It can also be skewed by one or two large winning trades. Always consider profit factor alongside trade count, expectancy, and max drawdown for a reliable assessment of strategy quality.
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    Want this tracked for you?

    TradeOlogy logs every trade and computes profit factor, expectancy, win rate and more from your real history - so you always know if your edge is holding.

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