Profit factor and trade expectancy calculator
Calculate profit per unit lost and the average outcome per trade. Use one period and treat costs consistently.
Use a decimal point. Initial values are an example, not a live quote.
Formula and example
Profit factor = total profits ÷ absolute total losses. Observed expectancy = net outcome ÷ number of trades.
Profits 1,500, losses 1,000 and 100 trades produce a 1.5 profit factor, a net outcome of 500 and observed expectancy of 5 per trade.
How to interpret the result
- Enter losses as a positive amount. Use outcomes after per-trade costs or clearly identify excluded costs.
- A sample without losses does not produce a finite profit factor or prove a perfect strategy.
- Expectancy is the average of that history, not a promise about the next trade.
- Assess profit factor alongside drawdown, sample size, position sizing and consistency over time. The account audit provides that context.