Pip value calculator
This pip calculator answers one question: if the price moves by a single pip, how many dollars does your position gain or lose? Knowing that number before you trade turns a stop-loss distance into a money amount you can judge.
The formula
If USD is the quote currency: that is already the USD value.
If USD is the base currency: divide by the current price.
Cross pairs: multiply by the rate that converts the quote currency into USD.
The pip size is 0.0001 for most pairs and 0.01 for pairs quoted in yen. For gold, the calculator uses a 100-ounce lot.
Worked examples
These use illustrative prices.
- EUR/USD, 2 lots: 200,000 × 0.0001 = $20 per pip. The price does not matter, because the dollar is the quote currency.
- USD/JPY at 150.00, 0.5 lots: 50,000 × 0.01 = 500 yen per pip. Divided by 150.00, that is about $3.33.
- EUR/GBP, 1 lot: 100,000 × 0.0001 = £10 per pip. With GBP/USD at 1.2700, that converts to $12.70.
Reading the result
Multiply the pip value by the number of pips to your stop-loss to see the planned loss, and by the distance to your target for the planned gain. If the planned loss is more than you are prepared to lose on a single idea, reduce the lot size, not the stop. The position size calculator does that step for you, and the margin calculator shows how much collateral the trade ties up.
Remember that the result excludes the spread, commission and overnight financing. For how those add up, see trading fees explained.
Reader questions
Why does the pip value change on USD/JPY but not EUR/USD?
On EUR/USD the result is already in dollars. On USD/JPY it is in yen, so converting to dollars depends on the current exchange rate.
What is a pipette?
A fractional pip: the fifth decimal place on most pairs (third on yen pairs). Ten pipettes make one pip.