Forex Basics
Forex Profit & Loss: How to Calculate P&L
Forex P&L comes from how far price moved in your favor or against you, multiplied by the size of your position. The extra step is converting the result into your account currency when it isn't the pair's quote currency.
6 min read
All prices and rates below are illustrative examples, not live quotes.
The formula
Long: P&L (quote) = (Exit − Entry) × Units Short: P&L (quote) = (Entry − Exit) × Units Pips = Price difference ÷ Pip size P&L (account) = P&L (quote) × Conversion rate
Long example: EUR/USD
Worked example
Buy 0.5 lots at 1.0850, close at 1.0910
- Price difference = 0.0060 = 60 pips
- Units = 50,000
- P&L = 0.0060 × 50,000 = $300
Profit $300 in a USD account (60 pips × $5 per pip).
Short example: USD/JPY
Worked example
Sell 1 lot at 150.00, close at 149.20
- Price fell 0.80 = 80 pips (pip size 0.01)
- P&L in yen = 0.80 × 100,000 = 80,000 JPY
- Convert to USD at the exit rate: 80,000 ÷ 149.20 ≈ $536.19
A short profits when price falls.
When the account currency isn't in the pair
If your account is in EUR and you trade GBP/USD, P&L arrives in USD and must be converted to EUR at a USD→EUR rate. MoneyTools calculators ask for that rate and show how it's applied, since they don't fetch live rates.
Costs to subtract
- Spread — see Forex Spread Cost.
- Commission per lot, if your account charges it.
- Swap for positions held overnight — see Forex Swap Explained.
Calculator walkthrough
- Open the Forex Profit & Loss Calculator.
- Choose the pair, long or short, and enter entry and exit prices.
- Enter the position size in lots.
- Provide a conversion rate if asked.
- Press Calculate to see pips and P&L.
To express the result as a percentage of your account, use the Forex P&L Percentage Calculator.
Run your own numbers
Calculate pips and profit or loss on a forex trade in your account currency.
Related calculators
Frequently asked questions
Related guides
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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.