Enter average win and loss as the % the trade moves your account (or per-trade % return).
At this payoff you need to win more than 42.9% of trades just to break even. Your 55% win rate is above that line.
Profit factor = gross winning amount ÷ gross losing amount. Educational, not financial advice; it assumes your averages hold and ignores fees, slippage and funding. Past performance never guarantees future results.
See Ezath's real profit factor on the public track record →Why win rate alone is a trap
A "90% win rate" sounds incredible until you do the math. If those wins average 1% and the rare losses average 12%, the profit factor is (0.9 × 1) ÷ (0.1 × 12) = 0.75 — a losing system that looks like a winner in screenshots. This is the exact template most Telegram signal groups run on: tight take-profits, wide stops, a beautiful win rate, and negative expectancy underneath.
Profit factor and expectancy strip that illusion away because they weigh the size of wins and losses, not just how often you're right. It's also why Ezath publishes its full record — win rate, average win and loss, every outcome — to a public track record you can run these numbers on yourself. More on this in Profit Factor: The One Number Every Signal Service Hides From You.
Profit factor calculator FAQ
What is profit factor?+
Profit factor is the total money your winning trades made divided by the total money your losing trades lost. A profit factor of 1.5 means you made $1.50 for every $1.00 you lost. Below 1.0 the strategy loses money; 1.0–1.3 is marginal; 1.5 and above over a large sample is a healthy edge.
How do you calculate profit factor from win rate?+
Profit factor = (win rate × average win) ÷ (loss rate × average loss). For example, a 55% win rate with an average win of 2% and average loss of 1.5% gives (0.55 × 2) ÷ (0.45 × 1.5) ≈ 1.63. This calculator does it for you and also shows your expectancy per trade.
Profit factor vs expectancy — what's the difference?+
Profit factor is a ratio (gross profit ÷ gross loss); expectancy is the average dollar (or %) result per trade. A strategy can have a profit factor above 1 but a tiny expectancy, meaning lots of trades for little reward. You want both: a profit factor comfortably above 1, and a positive expectancy big enough to beat fees.
What is a good profit factor?+
Context matters more than a single number, but as a rough guide: under 1.0 loses money, 1.0–1.3 is marginal and noise-sensitive, 1.3–1.5 is a real edge, and 1.5+ over hundreds of trades is strong. Be suspicious of very high numbers from small samples — twenty trades prove almost nothing.
Why does the break-even win rate matter?+
It's the win rate you'd need, at your payoff ratio, just to break even. If your average win is twice your average loss, you only need to win more than ~33% of the time. It shows whether your win rate is doing the heavy lifting or your payoff ratio is — and whether a strategy has any margin for error.
Numbers you can actually check
Ezath logs every BTC, ETH and SOL signal to a public, hash-chained track record — so its profit factor and win rate are verifiable, not a claim. Start free, no card.