Forex Pip Calculator

This pip calculator answers one question: how much money does a one-pip move make or lose on the position you are planning? Pick the pair, enter the current price and the lot size, and the result updates instantly. For cross pairs it asks for one extra exchange rate so it can express the answer in US dollars.

The formula behind the pip calculator

The pip size is 0.0001 for most pairs and 0.01 for yen pairs. One standard lot is 100,000 units. When the quote currency is the US dollar (EUR/USD, GBP/USD, AUD/USD), no conversion is needed and a standard lot is worth $10 per pip. When the dollar is the base currency (USD/JPY, USD/CHF), divide by the current price. For cross pairs such as EUR/GBP, the calculator asks for the extra rate it needs.

Worked example: USD/JPY

Illustrative example One standard lot of USD/JPY with the price at 150.00.

• Pip value in yen: 0.01 × 100,000 = ¥1,000
• Converted to dollars: ¥1,000 ÷ 150.00 = $6.67

Now compare 0.3 lots of EUR/USD: 0.0001 × 30,000 = $3.00 per pip, with no conversion because the pair is quoted in dollars.

How to read the result

The number shows how much your position gains or loses for every one-pip move. Multiply it by the distance to your stop-loss to see the money at risk, or by the spread to see the cost of opening the trade. Because the conversion uses the current rate, the dollar value of a pip on non-USD-quoted pairs drifts slightly as prices move.

Common mistakes when using pip values

• Treating a pip on USD/JPY as worth $10 per lot. It is 1,000 yen, which is less than $10 whenever the price is above 100.
• Forgetting that gold uses a different pip convention; the calculator applies the 100-ounce contract and 0.01 pip size.
• Confusing pips with points: some platforms quote a fifth decimal place, so ten "points" equal one pip.

Next step: use the position size calculator to pick a lot size from the amount you are willing to lose, or read how forex trading works for the wider picture.