Profit Factor Calculator
Calculate your profit factor - the ratio of gross profit to gross loss.
Total profit from all winning trades
Total loss from all losing trades (positive number)
Profit Factor
1.50
+$5,000
Gross Profit
+$15,000
Gross Loss
-$10,000
Understanding Profit Factor
Profit factor is one of the most important metrics in trading. It measures how much money your winning trades make compared to how much your losing trades lose. A profit factor above 1.0 means you're profitable overall.
Professional traders typically aim for a profit factor of at least 1.5 to 2.0. This provides a buffer for slippage, commissions, and periods of drawdown.
Profit Factor Formula
Profit Factor = Gross Profit / Gross LossProfit Factor Guidelines
<1.0
Losing Money
1.0-1.5
Marginal
1.5-2.0
Good
>2.0
Excellent
What Affects Profit Factor?
- •Win Rate: Higher win rate generally improves profit factor
- •Risk/Reward Ratio: Better R:R means larger wins vs losses
- •Position Sizing: Consistent sizing helps maintain profit factor
- •Discipline: Cutting losses quickly and letting winners run
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Track Your Profit Factor Automatically
RizeTrade calculates your profit factor in real-time as you import trades. See how each trade affects your overall performance.
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