Forex Profit Calculator
Quickly compute forex profit with accurate formulas. See amortization schedules, growth projections, and side-by-side comparisons.
Formula
Profit/Loss = (Entry − Exit or Exit − Entry) / Pip Size × Pip Value × Lot Size
For buy trades, subtract entry from exit to get the price difference. For sell trades, subtract exit from entry. Divide by pip size to get pips moved. Multiply pips by pip value per pip for your position size to get dollar profit or loss. A positive result means profit; negative means loss.
Worked Examples
Example 1: Buy EUR/USD Standard Lot
Problem: Buy 1 standard lot EUR/USD at 1.0850, close at 1.0920. Calculate profit.
Solution: Pips = (1.0920 - 1.0850) / 0.0001 = 70 pips\nPip value = 0.0001 × 100,000 = $10 per pip\nProfit = 70 × $10 = $700
Result: 70 pips gained | Profit: $700
Example 2: Sell GBP/USD with Loss
Problem: Sell 0.5 lots GBP/USD at 1.2650, close at 1.2700. Calculate loss.
Solution: Pips = (1.2650 - 1.2700) / 0.0001 = -50 pips (loss)\nPip value = 0.0001 × 50,000 = $5 per pip\nLoss = 50 × $5 = $250
Result: -50 pips | Loss: $250
Frequently Asked Questions
How do I calculate forex profit or loss?
Forex profit or loss is calculated by determining the pip difference between your entry and exit prices, then multiplying by the pip value for your position size. For a buy trade, subtract entry from exit; for a sell trade, subtract exit from entry. The pip value depends on your lot size and the currency pair. For USD-quoted pairs with a standard lot (100,000 units), one pip equals $10. So if you buy EUR/USD at 1.0850 and sell at 1.0920, that is 70 pips profit times $10 = $700. Remember to subtract spread costs for accurate net profit calculation.
What is the difference between realized and unrealized profit in forex?
Unrealized profit (or floating profit) is the current gain or loss on an open position that has not yet been closed. It fluctuates in real-time as the market price changes. Realized profit is the actual gain or loss locked in when you close a trade. Only realized profits and losses affect your account balance. For example, if you buy EUR/USD at 1.0850 and the current price is 1.0900, you have an unrealized profit of 50 pips. This becomes realized only when you close the trade. Many traders make the mistake of treating unrealized profits as guaranteed, leading to poor risk management decisions.
How do spreads affect my forex profit calculations?
Spreads reduce your effective profit on every trade because you buy at the ask price (higher) and sell at the bid price (lower). For a buy trade, your entry is at the ask price but your exit is at the bid price, so you immediately start with a negative pip count equal to the spread. For EUR/USD with a 1.5-pip spread, a 50-pip gross profit becomes 48.5 pips net profit. For scalpers targeting 5-10 pips, a 2-pip spread consumes 20-40% of their target, making spread costs critical. Always factor spreads into your profit calculations, especially for high-frequency strategies.
Can I lose more money than I have in my forex account?
With most regulated brokers, negative balance protection prevents you from losing more than your deposited amount. However, this was not always the case and some offshore brokers still allow negative balances. During extreme market events like the 2015 Swiss Franc crisis, many traders experienced account balances going deeply negative because stop losses could not execute during the rapid price movement. Leverage amplifies both profits and losses — with 1:100 leverage, a 1% adverse move wipes out your entire margin. Always use stop losses, appropriate leverage, and trade with regulated brokers that offer negative balance protection.
What are the different lot sizes in forex and how do they affect risk?
A standard lot is 100,000 units, a mini lot is 10,000, a micro lot is 1,000, and a nano lot is 100 units of the base currency. Smaller lots reduce your dollar-per-pip exposure, making them suitable for beginners or smaller accounts.
How does leverage work in forex trading?
Leverage lets you control a larger position with a smaller deposit (margin). At 100:1 leverage you control $100,000 with $1,000 margin. While leverage amplifies profits, it equally amplifies losses and can lead to margin calls if the market moves against you.