Pip value calculator
This pip calculator answers one question: if the price moves by one pip, how many dollars does your position gain or lose? Choose a pair, confirm the price, and enter the size in lots. For crosses, the calculator also asks for a conversion rate so it can turn the result into US dollars.
The formula
USD-quoted pairs (EUR/USD, GBP/USD): pip value in USD = units × 0.0001
USD-based pairs (USD/JPY, USD/CHF): pip value in USD = units × pip size ÷ current price
Crosses (EUR/GBP, GBP/JPY): convert the quote-currency amount into USD using that currency's USD rate
A pip is 0.0001 for most pairs and 0.01 for pairs quoted in yen. One standard lot is 100,000 units; for gold it is usually 100 ounces, and a $0.01 move on one lot of gold is worth $1.
Worked examples (illustrative prices)
- 0.3 lots of EUR/USD: 30,000 × 0.0001 = $3 per pip.
- 1 lot of USD/JPY at 150.00: 100,000 × 0.01 = ¥1,000 per pip; ¥1,000 ÷ 150 = about $6.67 per pip.
- 1 lot of gold: 100 oz × $0.01 = $1 per $0.01 move, or $100 for a $1 move in the gold price.
Notice that pip value on USD/JPY changes as the price changes. At a lower USD/JPY rate, each pip is worth more dollars, because the same ¥1,000 converts into more dollars.
How to read the result
Multiply the pip value by the number of pips between your entry and your stop-loss to see the planned loss, and by the distance to your target for the planned gain. With $3 per pip and a 25-pip stop, the planned loss is $75 before costs. If that figure is larger than you are prepared to lose, reduce the lot size rather than tightening the stop to a level the market will hit by noise alone. The lot size calculator does this in reverse.
Remember that pip value measures sensitivity, not risk on its own. Gaps, slippage, spreads and overnight financing all sit on top. For how pips fit into the wider picture of pairs and leverage, see how forex trading works.