Calculator
Profit factor calculator
Enter the total profit from winning trades and the total loss from losing trades. The calculator returns your profit factor and a plain-language reading of the result.
Profit factor
1.28
Profitable on this sample. Check the trade count and drawdown.
Gross loss is entered as a positive number. Breakeven trades are usually excluded from the ratio but still count toward the sample size.
The formula
If gross profit is $770 and gross loss is $600, the profit factor is 1.28. That means the strategy made $1.28 for every $1 it lost over the period.
How to read the result
- Below 1.0: the strategy lost money over the period.
- 1.0 to 1.2: marginal, and sensitive to a few trades.
- 1.2 to 1.5: profitable, but check the trade count and drawdown.
- Above 1.5: strong on the sample, provided it is not one outlier winner.
A high ratio on a small sample is not proof of an edge. Always read profit factor next to the number of trades, the largest winner, and maximum drawdown.
What it does not tell you
- The risk taken to produce the result.
- The depth of the drawdown along the way.
- Whether the result is statistically meaningful.
- Whether the decisions were good or the outcome was lucky.
Questions and answers
What is a good profit factor?
There is no universal threshold. Many traders treat 1.2 to 1.5 as a reasonable range to review, and anything above 1.5 as strong on the sample. The number only means something alongside the trade count, drawdown and largest winner.
Should breakeven trades be included?
They add neither profit nor loss, so they are usually excluded from the ratio. Include them in the trade count, because they still affect the sample size.
What if I have no losing trades?
Profit factor is undefined when gross loss is zero. The calculator reports that case separately instead of returning infinity.
Your next review starts here.
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