Profit Factor Calculator
Calculate profit factor from your gross profit and loss, or from your win rate and reward-to-risk, and see what it says about your strategy.
What is profit factor?
Profit factor compares what your winning trades earn with what your losing trades cost. Above 1.0 a strategy made money over the sample; below 1.0 it lost money.
Profit factor = Gross profit ÷ Gross loss
If your winners total $3,600 and your losers total $2,400, profit factor is 1.5: you earned $1.50 for every dollar you lost. You can also work it out from your stats: (win rate ÷ loss rate) × (average win ÷ average loss).
What is a good profit factor?
As a rough guide, 1.0 to 1.2 is marginal, 1.2 to 1.5 is a workable edge, 1.5 to 2.0 is strong, and above 2.5 is either excellent or a sign that the sample is small or the backtest is overfitted. Always include commissions and spreads.
Sample size matters
Profit factor from 10 trades tells you very little, because one large winner can distort it. Wait for at least 30 trades before reading much into it and 100 before trusting it.
Track profit factor by setup
Clarity Tracking calculates profit factor for every strategy, instrument and session from your synced trades, so you can drop the setups that drag your results down.
