How to use this calculator
- Choose the same strategy, account currency, and date range for both totals.
- Sum positive trade results separately from the absolute amounts of negative trade results.
- Use a consistent before-cost or after-cost convention. For after-cost analysis, subtract costs at trade level before classifying and summing the outcomes.
Formula and worked example
Profit factor = sum of positive trade results ÷ absolute sum of negative trade results.
If winning trades total 5,000 and losing trades total 2,500 in absolute terms, profit factor is 5,000 ÷ 2,500 = 2.00. That is 2 units of profit for every unit of loss in the sample. The difference between the totals is 2,500 under the same cost convention.
What the result does—and does not—tell you
A ratio above 1 means recorded profits exceed recorded losses under the chosen convention; below 1 means the opposite. The ratio does not reveal how much capital was used, the trade count, the largest loss, or the order of outcomes. A few unusual wins can dominate it. Review the underlying trades and drawdown instead of treating a single ratio as proof of a durable strategy.
Frequently asked questions
What if there are no losing trades?
With positive profits and zero losses, there is no finite ratio because the denominator is zero. With both totals zero, there are no trade results to compare. Neither case establishes that future losses are unlikely.
Is profit factor the same as reward-to-risk?
No. Profit factor compares aggregate recorded gains and losses. Planned reward-to-risk compares a target distance with a stop distance for a setup.
Are fees included automatically?
No. The calculator uses the totals you enter. If totals are before costs, the difference is before costs too. To include costs, calculate trade-level net results before summing profits and losses.
Methodology and limitations
WTE Toolbox · Calculation model v1 · Updated September 6, 2026. These are deterministic calculations from manually supplied inputs. Examples are hypothetical, not recommended trades or risk limits. No market feed, account connection, or broker validation is used. Display values are rounded; calculations use unrounded intermediate values.
Educational use only, not personalized financial advice. Trading can result in substantial losses. A calculated stop loss is not a guaranteed execution price or maximum loss.