Pip value calculator
This pip calculator turns a price move into money. Choose a pair, enter the current price and your size in lots, and it returns the value of one pip in US dollars. Knowing that number before you place a trade tells you what a stop-loss distance really puts at risk.
The formula
Pip value in USD = pip value in quote currency × USD value of one quote-currency unit
A pip is 0.0001 for most pairs and 0.01 for pairs including the Japanese yen. One standard lot is 100,000 units of the base currency; for gold (XAU/USD) the calculator uses 100 ounces, with a pip of $0.01.
- Dollar is the quote currency (EUR/USD, GBP/USD): the result is already in dollars, $10 per standard lot.
- Dollar is the base currency (USD/JPY, USD/CHF): divide by the current price to convert back into dollars.
- Cross pairs (EUR/GBP, GBP/JPY): the calculator asks for a conversion rate between the quote currency and the dollar.
Worked examples
Illustrative prices only.
- GBP/USD, 0.2 lots. 0.2 × 100,000 × 0.0001 = $2 per pip. A 30-pip stop risks $60 before costs.
- USD/JPY at 150.00, 1 lot. 1 × 100,000 × 0.01 = ¥1,000 per pip. Converted: 1,000 ÷ 150 = about $6.67 per pip.
- USD/JPY at 150.00, 0.3 lots. 0.3 × 100,000 × 0.01 = ¥300, and 300 ÷ 150 = $2.00 per pip.
- Gold, 1 lot. 100 oz × $0.01 = $1 per pip, so a $5 move in the gold price (500 pips) is worth $500 on one lot.
How to read the result
The pip value is fixed for dollar-quoted pairs but moves with the exchange rate for others, so recalculate if the price has shifted a lot. Multiply the pip value by your stop distance to see the loss you are planning to accept, and add the spread and any commission on top, since those are paid whether the trade wins or loses.
Turn the question around with the position size calculator: start from the amount you are willing to risk and let it work out the lots. Then check the deposit the position will tie up with the margin calculator. The background is in how forex trading works.