Profit Factor Calculator

Understand the calculation.

Profit factor = total winning P&L ÷ absolute total losing P&L

Profit factor compares the sum of winning trade outcomes with the absolute sum of losing outcomes. Use a consistent sample and cost convention. It describes that sample, not the reliability of a strategy in the future.

How to use the calculator

1. Choose one period and one strategy, or clearly label a combined sample.
2. Sum positive trade outcomes and enter that total.
3. Sum the absolute values of negative trade outcomes and enter a positive loss total.
4. Use net outcomes for both totals if you want a fee-inclusive result.

Worked example

If winning trades total $1,500 and losing trades total $1,000, profit factor is 1.50 and the sample nets $500. If those totals exclude commissions and funding, the result is before costs. Reclassifying each trade by its final net result gives a more useful account-level view.

What this calculation assumes

• Both totals use the same currency or the same R convention.
• Zero losses leave the ratio undefined because there is no loss denominator.
• Profit factor does not describe trade count, drawdown, the sequence of losses, or concentration in a few outliers.

Educational estimates, not trade recommendations. Actual fills and exchange rules can change outcomes. Money inputs use one consistent quote currency; the $ symbol is an example currency label.

Frequently asked questions

Formula references

• CME Group: position size and stop risk
• Bybit: linear P&L, fees, and leverage
• Trading terms and metric definitions