TRADE OUTCOME CALCULATOR

Forex Profit & Loss Calculator

Calculate your projected profit or loss in pips and account currency before opening a trade. Test various lot sizes and exit price targets with instant calculations.

Trade Setup

100,000 units

Estimated Profit & Loss

Long 1 Lot(s) of EUR/USD

✓ Estimated Profit
+$700.00
Pip Differential
+70.0 pips
Pip Value
$10.00/pip
Price Change
0.0070
Contract Units
100,000

Risk-to-Reward Scenarios (Assuming 30-Pip Stop Loss)

1:1 R:R Target (+30 pips)
+$300.00
1:2 R:R Target (+60 pips)
+$600.00
1:3 R:R Target (+90 pips)
+$900.00
COMPANION TOOL

Position Size Calculator

Determine the exact lot size to trade based on your account balance and percentage risk limit.

Size Your Position →
LESSON GUIDE

Understanding Risk-to-Reward Ratios

Discover why asymmetric reward-to-risk profiles allow profitable trading even with a 40% win rate.

Read Risk-Reward Lesson →

How Forex Profit & Loss Is Calculated

Every forex trade outcome depends on three core variables: pip difference, pip monetary value, and trade size (lot volume). By understanding the underlying math, traders can set precise profit targets and manage downside risk effectively.

Worked Example 1: EUR/USD Long Position
  • • Pair: EUR/USD (1 Lot = 100,000 units)
  • • Direction: Buy (Long)
  • • Entry Price: 1.0850
  • • Exit Price: 1.0920
  • • Pip Gain: (1.0920 - 1.0850) / 0.0001 = 70 pips
  • • Pip Value: $10.00 per pip per lot
  • Total Profit: 70 pips × $10.00 × 1.0 lot = +$700.00 USD
Worked Example 2: USD/JPY Short Position
  • • Pair: USD/JPY (0.5 Mini Lots = 50,000 units)
  • • Direction: Sell (Short)
  • • Entry Price: 154.50
  • • Exit Price: 155.30
  • • Pip Loss: (154.50 - 155.30) / 0.01 = -80 pips
  • • Pip Value: (0.01 / 155.30) × 100,000 ≈ $6.44 per lot
  • Total Loss: -80 pips × $6.44 × 0.5 lot = -$257.60 USD

Pip Value vs. Account Currency: Why Exchange Rates Matter

When trading pairs where USD is the quote currency (e.g., EUR/USD, GBP/USD, AUD/USD), 1 pip on a standard lot is fixed at exactly $10.00 USD. However, for non-USD quote currencies (such as USD/JPY or EUR/GBP), pip value changes dynamically with the exchange rate. To calculate pip value accurately before setting stop losses, use our dedicated Pip Value Calculator and combine it with our Position Size Calculator for institutional risk management.

Reviewed by Francis Xavier

(Senior Forex Educator & Market Analyst)
Verified Educator

The Profit & Loss Calculator equations and algorithms have been independently verified. This calculator uses institutional-grade mathematical models and has been reviewed by senior trading educators for mathematical accuracy, formula validity, and alignment with strict risk management principles.

Read about our educational & auditing standards Test your trading plan with the AI Coach

Frequently Asked Questions

For a Buy (Long) trade: Profit = (Exit Price - Entry Price) / Pip Size × Pip Value × Lots. For a Sell (Short) trade: Profit = (Entry Price - Exit Price) / Pip Size × Pip Value × Lots. In USD-quoted pairs (like EUR/USD), 1 pip on 1 standard lot is worth exactly $10.

A Standard Lot equals 100,000 units of the base currency (1 pip ≈ $10). A Mini Lot (0.10) equals 10,000 units (1 pip ≈ $1). A Micro Lot (0.01) equals 1,000 units (1 pip ≈ $0.10).

This tool calculates gross market price differential. To factor in spreads, simply adjust your entry or exit price by the spread (e.g. 1 pip on EUR/USD).

For pairs where USD is the base currency (like USD/JPY), the pip value fluctuates with the current exchange rate: Pip Value = (0.01 / USD/JPY Rate) × 100,000. Our calculator dynamically adjusts for this.