Pips & Lots
Forex Pip Calculator Explained: How Pips Work
A pip is the small unit that forex prices move in. A pip calculator turns pips into money by combining the pip size, your trade size and the exchange rate. Once you know that pip value, you can work out profit, loss and risk before you trade.
By the MoneyTools Editorial TeamLast updated 6 min readEditorial Policy
Pip size
Most currency pairs are quoted to four decimal places, so one pip is 0.0001. Pairs involving the Japanese yen are quoted to two decimal places, so one pip is 0.01. Many brokers show an extra digit, called a pipette, which is one-tenth of a pip. For more background, read What Is a Pip?.
The pip value formula
Pip value (quote currency) = Pip size × Units traded
The result is in the pair's quote currency (the second one). If that is not your account currency, convert it at the current rate.
- USD is the quote currency (EUR/USD, GBP/USD): the pip value is already in dollars.
- USD is the base currency (USD/JPY, USD/CAD): divide by the pair's price.
- Cross pairs (EUR/GBP): convert using the quote currency's rate against USD.
Pip value by lot size
| Lot type | Units | Pip value on EUR/USD |
|---|---|---|
| Standard | 100,000 | $10.00 |
| Mini | 10,000 | $1.00 |
| Micro | 1,000 | $0.10 |
Pip value on different pairs
| Pair | Example rate | Pip value per standard lot (USD) |
|---|---|---|
| EUR/USD | any | 0.0001 × 100,000 = $10.00 |
| USD/JPY | 150.00 | 0.01 × 100,000 = ¥1,000 ÷ 150 ≈ $6.67 |
| USD/CAD | 1.3500 | 0.0001 × 100,000 = C$10 ÷ 1.35 ≈ $7.41 |
| EUR/GBP | GBP/USD 1.2700 | 0.0001 × 100,000 = £10 × 1.27 = $12.70 |
Worked example
Worked example
0.5 lot of EUR/USD
- Trade size: 0.5 standard lot = 50,000 units
- Pip value = 0.0001 × 50,000 = $5 per pip
- Buy at 1.0850, sell at 1.0890 → 1.0890 − 1.0850 = 0.0040 = 40 pips
- Profit = 40 pips × $5 = $200 (before spread and commission)
If the price had fallen 40 pips instead, the loss would be $200.
Using pip value to manage risk
Pip value connects your stop-loss to a dollar amount. If your stop is 25 pips away and each pip is worth $5, you risk $125 on the trade. To risk a set amount, adjust the lot size — the Position Size Calculator does this for you.
Use the pip calculator
- Open the Pip Calculator and choose your pair, lot size and account currency.
- Enter the current exchange rate yourself — MoneyTools does not use live prices.
- Use the Forex Profit/Loss Calculator to turn pips into a full trade result.
Forex trading with leverage carries a high risk of loss. All rates here are examples you can replace with your own.
Run your own numbers
Find pip size and pip value for a currency pair and trade size.
Related calculators
Frequently asked questions
Related guides
What Is a Pip in Forex? Pips Explained With Examples
What a pip is in forex, the 0.0001 convention for most pairs and 0.01 for JPY pairs, how to calculate pip value, and worked examples for EUR/USD and USD/JPY.
Forex Lot Size Explained: Standard, Mini, Micro & Position Size
How forex lot sizes work — standard, mini and micro lots — how lot size sets pip value and P&L, with worked examples and calculators.
Forex Position Size Calculator: How Position Size Is Calculated
How forex position size is calculated from account balance, risk amount, entry and stop-loss distance in pips, and pip value — with a formula, worked example and calculator.