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Morale is, basically, TW's way of giving low point players an advantage against higher point players. When a high point player attacks a lower point player, their troops fight less effectively, ranging anywhere from 30-100%. This morale bonus helps the defender's troops, giving them a chance of survival and minimizing their losses. Morale does have a limit, however. At 30%, the morale advantage/disadvantage will stop changing, and will not go any lower. Morale is also calculated at the time of the battle, not at the time of sending the attack, when using the in-game simulator this should be something you take into account.

Calculation

Morale is calculated by dividing the defending players points by the attacking players points, multiplying this by 300 and then adding 30.

30 + ((defending player's points/attacking players points) x 300) is the formula. This should match the numbers given in the simulator when rounded to the nearest whole number.

Morale Basher

Morale bashing is an strategy to get around morale's detriments. Basically, a morale basher is a smaller player used to attack the target before the larger player goes in for the kill. The larger player then repays the morale basher in resources or support.

Other Morale Tactics

Some players have devised a way to decrease the disadvantages suffered from morale using demolition. Because morale bonus changes according to points, the attacked player has the option to either demolish or attack their own villages using catapults, attacking their Smithy. Since the smithy is largely unneeded once the technology limit is reached and their Academy built, getting rid of it quickly is a good way to decrease your points. Since the smithy is worth more than a usual building, this is an effective way to lower your points and gain an extra morale boost.

This tactic will not work if the player wishes to continue to use the academy. Noblemen cannot be educated and (on coin worlds) coins cannot be minted if the smithy is not at the required level.

Non-Morale World

Some of the newer worlds have no morale, many of the players enjoy this setting as it allows them to noble players who 'turtle' more easily. However the settings makes it harder for players who grow more slowly, this is because larger players no longer lose as many troops as they would on a world with morale.