Pip Calculator
Calculate pip with our free Pip Calculator. Compare rates, see projections, and make informed financial decisions. Enter your values for instant results.
Reviewed by Daniel Agrici, Founder & Lead Developer
Formula
Pip Value = Pip Size × Position Size (÷ Exchange Rate for non-USD pairs)
For USD-quoted pairs, multiply the pip size (0.0001 for most pairs, 0.01 for JPY pairs) by the total position size in units. For pairs not quoted in USD, divide the result by the current exchange rate to convert to your account currency.
Worked Examples
Example 1: Standard Lot EUR/USD
Problem:Calculate the pip value and profit for buying 1 standard lot of EUR/USD at 1.0850 and closing at 1.0920.
Solution:Pip value = 0.0001 × 100,000 = $10 per pip\nPips gained = (1.0920 - 1.0850) / 0.0001 = 70 pips\nProfit = 70 × $10 = $700
Result:Pip value: $10 | 70 pips gained | Profit: $700
Example 2: Mini Lot USD/JPY
Problem:Calculate the pip value for trading 2 mini lots of USD/JPY with the rate at 149.50.
Solution:Position size = 2 × 10,000 = 20,000 units\nPip value = 0.01 × 20,000 / 149.50 = $1.34 per pip\nFor JPY pairs, divide by the exchange rate to convert to USD
Result:Pip value: $1.34 per pip for 2 mini lots
Frequently Asked Questions
What is a pip in forex trading?
A pip (Percentage in Point) is the smallest standard price movement in a forex currency pair. For most pairs like EUR/USD, one pip equals 0.0001 (the fourth decimal place). For Japanese Yen pairs like USD/JPY, one pip equals 0.01 (the second decimal place). Pips are used to measure price changes, calculate profits and losses, and determine spread costs. For example, if EUR/USD moves from 1.0850 to 1.0851, that is a one-pip movement.
How is pip value calculated?
Pip value depends on three factors: the currency pair, position size, and account currency. For USD-quoted pairs (like EUR/USD), the formula is: Pip Value = Pip Size × Position Size. For a standard lot (100,000 units) of EUR/USD, one pip = 0.0001 × 100,000 = $10. For a mini lot (10,000 units), one pip = $1. For a micro lot (1,000 units), one pip = $0.10. For non-USD quoted pairs, you must divide by the current exchange rate.
What is the difference between a pip and a pipette?
A pipette (or point) is one-tenth of a pip. Most modern brokers quote prices to 5 decimal places for standard pairs (3 for JPY pairs), with the last digit being a pipette. For example, if EUR/USD moves from 1.08505 to 1.08506, that is a one-pipette movement, or 0.1 pips. Pipettes allow for tighter spreads and more precise pricing but are not commonly used for profit/loss calculations.
What is a pipette and how does it relate to a pip?
A pipette is one-tenth of a pip, representing the fifth decimal place for most pairs (0.00001) or the third decimal place for JPY pairs (0.001). Many brokers now quote prices in pipettes for tighter spreads. Ten pipettes equal one pip.
References
Reviewed by Daniel Agrici, Founder & Lead Developer · Editorial policy