Understand profit and loss
Profit/Loss Calculator
Explore how a price move, position size and pip value combine into an illustrative profit or loss. It is a math example, not a prediction.
Your example
Simple formula
(Exit−entry)÷pip size=pips×pip value per lot×lots=profit or loss
For a sell, the price difference is entry minus exit. This excludes spread, commissions, swaps, slippage and conversion differences.
Beginner guide
How to use the Profit/Loss Calculator
Profit and loss in forex is measured in pips and then converted to money using pip value and position size. This calculator walks through that arithmetic with prices you enter. It is a worked example, not a forecast.
- 1
Choose the direction
A buy gains when price rises. A sell gains when price falls.
- 2
Enter entry and exit prices
Use the prices where the example trade opens and closes.
- 3
Set pip size and lots
Use 0.0001 for most pairs, 0.01 for yen pairs, and the position size in lots.
- 4
Enter pip value per lot
Use an estimated value in the same currency as the label. The Pip calculator can help.
Worked example
A buy at 1.0850 closed at 1.0890 is a 40-pip move. With USD 10 per pip per lot on 0.5 lots, the example comes to +USD 200.
40 pips × USD 10 × 0.5 lots = +USD 200.00
What the result means
The result is the arithmetic outcome for those exact inputs. It excludes spread, commissions, swaps and slippage, and it does not show what any real trade would produce.