Forex Pip Profit Calculator
Use this calculator to determine the profit or loss in your account currency based on the pips gained or lost in a Forex trade.
EUR/USD
USD/JPY
GBP/USD
AUD/USD
USD/CAD
EUR/GBP
EUR/JPY
GBP/JPY
NZD/USD
USD/CHF
USD
EUR
GBP
JPY
CAD
AUD
CHF
NZD
This rate converts the pip value (which is in the pair's quote currency) to your account currency.
- If the pair's quote currency IS your account currency (e.g., EUR/USD, account USD), enter 1.
- If your account currency IS the base currency of the pair (e.g., USD/JPY, account USD), enter 1 divided by the Current Rate of Traded Pair.
- Otherwise, enter the cross rate between the pair's quote currency and your account currency (e.g., for EUR/GBP, account USD, enter the current GBP/USD rate).
Result:
Understanding Forex Pip Profit Calculation
In the dynamic world of Forex trading, understanding how to calculate potential profit or loss is fundamental. The Forex Pip Profit Calculator helps traders quickly estimate the monetary value of their trades based on pip movements, trade size, and account currency.
What is a Pip?
A 'pip' (percentage in point) is the smallest unit of price movement in a currency pair. For most currency pairs, a pip is the fourth decimal place (0.0001). For Japanese Yen (JPY) pairs, a pip is the second decimal place (0.01).
- Example (4-decimal pair): If EUR/USD moves from 1.0850 to 1.0851, it has moved 1 pip.
- Example (2-decimal pair): If USD/JPY moves from 150.25 to 150.26, it has moved 1 pip.
What is a Lot?
A 'lot' refers to the standardized unit of trade size in the Forex market. The size of your trade directly impacts the value of each pip movement.
- Standard Lot: 100,000 units of the base currency.
- Mini Lot: 10,000 units of the base currency.
- Micro Lot: 1,000 units of the base currency.
Our calculator uses 'Lots' as a decimal value, where 1.0 lot is a standard lot, 0.1 lot is a mini lot, and 0.01 lot is a micro lot.
How is Pip Value Calculated?
The value of a single pip depends on the currency pair, your trade size, and your account currency. Here's the general breakdown:
- Determine Pip Step: This is 0.0001 for most pairs and 0.01 for JPY pairs.
- Calculate Pip Value in Quote Currency (per standard lot):
- For 4-decimal pairs (e.g., EUR/USD): 0.0001 * 100,000 = 10 units of the quote currency.
- For 2-decimal pairs (e.g., USD/JPY): 0.01 * 100,000 = 1,000 units of the quote currency.
- Adjust for Trade Size: Multiply the pip value per standard lot by your actual trade size in lots (e.g., 0.5 for a mini lot, 0.01 for a micro lot).
- Convert to Account Currency: This is the crucial step where the 'Conversion Rate' input comes in. The pip value, initially in the pair's quote currency, needs to be converted into your account's base currency.
Understanding the 'Conversion Rate' Input
This input is vital for accurately converting the pip value into your account currency. Here's how to determine what to enter:
- Scenario 1: Quote Currency IS Account Currency
If the second currency in your pair (the quote currency) is the same as your account currency, then no conversion is needed. The pip value is already in your account currency.
Example: Trading EUR/USD with a USD account. The quote currency (USD) is your account currency.
Enter: 1 - Scenario 2: Base Currency IS Account Currency
If the first currency in your pair (the base currency) is the same as your account currency, you need to divide the pip value (which is in the quote currency) by the current rate of the traded pair.
Example: Trading USD/JPY with a USD account. The base currency (USD) is your account currency. The pip value is in JPY. To convert JPY to USD, you divide by the USD/JPY rate.
Enter: 1 / [Current Rate of Traded Pair] (e.g., if USD/JPY is 150.00, enter 1/150 = 0.006667) - Scenario 3: Cross Currency Pair (Neither Base nor Quote is Account Currency)
If neither the base nor the quote currency of the pair is your account currency, you need to find the direct exchange rate between the pair's quote currency and your account currency.
Example: Trading EUR/GBP with a USD account. The pip value is in GBP. You need to convert GBP to USD.
Enter: The current GBP/USD rate (e.g., if GBP/USD is 1.2500, enter 1.2500)
How to Use the Calculator: Realistic Examples
Example 1: EUR/USD Trade with USD Account
- Currency Pair: EUR/USD
- Trade Size (Lots): 1.0 (Standard Lot)
- Pips Gained/Lost: 50 pips (profit)
- Account Currency: USD
- Current Rate of Traded Pair: 1.0850
- Conversion Rate (Quote Currency to Account Currency): 1 (since USD is the quote currency and account currency)
- Calculation:
- Pip Step: 0.0001
- Pip Value per Standard Lot in Quote Currency (USD): 0.0001 * 100,000 = $10
- Pip Value for 1.0 Lot: $10 * 1.0 = $10
- Total Profit: 50 pips * $10/pip = $500.00
- Result: Profit of $500.00
Example 2: USD/JPY Trade with USD Account
- Currency Pair: USD/JPY
- Trade Size (Lots): 0.5 (Mini Lot)
- Pips Gained/Lost: -25 pips (loss)
- Account Currency: USD
- Current Rate of Traded Pair: 150.25
- Conversion Rate (Quote Currency to Account Currency): 1 / 150.25 (since USD is the base currency and account currency, and JPY is the quote currency) = 0.006655
- Calculation:
- Pip Step: 0.01
- Pip Value per Standard Lot in Quote Currency (JPY): 0.01 * 100,000 = 1000 JPY
- Pip Value for 0.5 Lots: 1000 JPY * 0.5 = 500 JPY
- Pip Value in Account Currency (USD): 500 JPY * (1 / 150.25) = $3.3278
- Total Loss: -25 pips * $3.3278/pip = -$83.19
- Result: Loss of $83.19
Example 3: EUR/GBP Trade with USD Account
- Currency Pair: EUR/GBP
- Trade Size (Lots): 0.1 (Micro Lot)
- Pips Gained/Lost: 80 pips (profit)
- Account Currency: USD
- Current Rate of Traded Pair: 0.8550
- Conversion Rate (Quote Currency to Account Currency): 1.2500 (assuming GBP/USD rate is 1.2500)
- Calculation:
- Pip Step: 0.0001
- Pip Value per Standard Lot in Quote Currency (GBP): 0.0001 * 100,000 = 10 GBP
- Pip Value for 0.1 Lots: 10 GBP * 0.1 = 1 GBP
- Pip Value in Account Currency (USD): 1 GBP * 1.2500 = $1.25
- Total Profit: 80 pips * $1.25/pip = $100.00
- Result: Profit of $100.00