Pip value calculator
A pip calculator answers one question: if the price moves by one pip, how much money does my position gain or lose? Choose the pair, enter the current price and your size in lots, and the result appears in US dollars. For cross pairs, enter the conversion rate the form asks for.
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
For crosses: multiply by the quote currency's rate against USD
The pip size is 0.0001 for most pairs and 0.01 for pairs involving the Japanese yen.
Worked examples (illustrative prices)
- EUR/USD, 0.3 lots: 0.3 × 100,000 × 0.0001 = $3.00 per pip. The dollar is the quote currency, so no conversion is needed.
- USD/JPY at 150.00, 1 lot: 1 × 100,000 × 0.01 = ¥1,000 per pip. Converted: 1,000 ÷ 150 ≈ $6.67 per pip.
- EUR/GBP, 1 lot, with GBP/USD at 1.2700: 100,000 × 0.0001 = £10 per pip, and £10 × 1.27 = $12.70 per pip.
How to use the result
Pip value is the bridge between price movement and money. Multiply it by the distance to your stop-loss to see what the trade risks: $3 per pip with a 40-pip stop is $120 at risk. If that number feels too big relative to your account, reduce the lot size, or let the position size calculator work backwards from the amount you accept losing.
Keep in mind that pip value for pairs where the dollar is the base currency changes as the price moves, because the conversion uses the current rate. The difference is small over a single trade but matters when comparing positions over time. For the concepts behind pips and lots, see how forex trading works.