Profit Factor

Calculate Profit Factor instantly with the exact formula and a worked example.

Profit Factor

Winning trades
Average win$
Losing trades
Average loss$
Profit Factor
1.3333
Calculate Profit Factor instantly with the exact formula and a worked example.
Net profit
3000$
Win rate
40%
Expectancy per trade
30$
Rating
Weak edge

More about: Profit Factor

What it calculates

The “Profit Factor” calculator computes Profit Factor from 4 parameters: winning trades, average win ($), losing trades, average loss ($).

Used by investors to estimate returns, project savings, and analyze a portfolio.

Example calculation

With parameters Winning trades = 40, Average win = 300 $, Losing trades = 60, Average loss = 150 $ the result is 1.33.

How to use

  1. Enter winning trades, average win, losing trades and average loss — each field above is adjustable with a slider.
  2. Profit Factor is calculated automatically as you type.
  3. Check the worked example below to see the formula applied to real numbers.
  4. Copy the result or bookmark this calculator.

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FAQ

What is compound interest?
Compound interest means you earn returns not only on your original principal but also on previously earned interest. Formula: A = P · (1 + r/n)^(n·t). Over long periods this produces exponential growth.
How much do regular contributions matter?
A lot. Adding a fixed amount every month and reinvesting earnings dramatically increases the final value, especially over 20–30 years, because each contribution compounds for the remaining term.
What is the Rule of 72?
A quick estimate for doubling time: years ≈ 72 / annual return %. At 8% your money doubles in about 9 years; at 12%, in about 6 years.
What return rate should I assume?
Historically the S&P 500 has returned about 10% per year before inflation (around 7% after). Use a conservative figure for planning and remember that past performance does not guarantee future results.

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