Pip calculator: what one pip is worth in any forex pair

Written by the Tactfolio research teamPublished 4 min read

A pip is the small price step that forex prices move in. For most currency pairs, one pip is 0.0001. For pairs priced in Japanese yen, one pip is 0.01. This pip calculator shows what one pip is worth for your trade size, in your own account currency.

  • One pip on 1 standard lot (100,000 units) of EUR/USD is worth $10.
  • A smaller trade makes each pip worth less. On 0.1 lot, one pip of EUR/USD is worth $1.
  • Pairs priced in yen use 0.01 as one pip, not 0.0001.
  • If your account currency is not part of the pair, you need one more exchange rate.

Result

Value of one pip
$10.00
Value of 10 pips
$100.00
One pip is a price change of
0.0001 USD

How to use the pip calculator#

Pick the currency pair and the currency your account is in. Then type your trade size in lots and the price of the pair. The calculator shows what one pip and ten pips are worth to you.

The prices start at round example numbers. They are not live prices, so type the price your broker shows you.

How do you calculate pip value?#

Pip value is the pip size, times the number of units you trade, times a rate that turns the result into your account currency.

pip value = pip size × units × rate to your account currency
  • Pip size is 0.0001, or 0.01 for pairs priced in yen.
  • Units is your trade size in lots times 100,000.
  • Rate to your account currency changes money from the second currency in the pair into your own money. The second currency is called the quote currency.

The rate depends on where your account currency sits in the pair.

Your account currency isRate to useExample with a US dollar account
The second currency in the pair1EUR/USD
The first currency in the pair1 divided by the priceUSD/JPY
Not in the pairThe price of 1 unit of the second currency in your currencyEUR/GBP, using the GBP to USD price

A worked example#

Say you buy 1 standard lot of EUR/USD at 1.1000, and your account is in US dollars.

  1. The pip size is 0.0001.
  2. The trade is 1 × 100,000 = 100,000 units.
  3. The rate is 1, because EUR/USD is already priced in dollars.
  4. The pip value is 0.0001 × 100,000 × 1 = $10.

So if the price moves 20 pips, from 1.1000 to 1.1020, you gain or lose $200.

Now try USD/JPY at 150.00 with the same dollar account. One pip is 0.01 yen. On 100,000 units, that is 1,000 yen per pip. To turn yen into dollars, divide by the price of 150. Each pip is worth about $6.67.

Common mistakes with pips#

  • Using the wrong pip size for yen pairs. A pip on USD/JPY is 0.01. If you use 0.0001, your answer is 100 times too small.
  • Mixing up pips and pipettes. Many brokers show one extra digit. That last digit is a pipette, which is one tenth of a pip.
  • Forgetting your account currency. A pip on EUR/GBP is worth pounds first. If your account is in dollars, you need the price of a pound in dollars.
  • Picking a trade size by feel. Work out the pip value first. Then you know what a stop 30 pips away would cost you.

Leverage makes losses bigger as well as gains. You can lose more than you put in.

Try it on Tactfolio#

Tactfolio does not trade forex. This calculator is a free tool for learning. If you want to test investing rules on past prices before you risk money, the Tactfolio strategy builder backtests rules on US stocks and ETFs. To see how big a trade your deposit controls, try the forex margin calculator and the leverage calculator. To size a trade from your stop-loss, try the position size calculator. Every tool is on the free trading calculators page.

Common questions#

How much is 1 pip worth?#

On 1 standard lot of a pair priced in US dollars, like EUR/USD, one pip is worth $10. On a mini lot (0.1) it is $1. On a micro lot (0.01) it is $0.10. Other pairs and account currencies give other values, so use the calculator above.

What is a pip in forex?#

A pip is a fixed, small step in a currency price. For most pairs it is the fourth decimal place, 0.0001. For pairs priced in yen it is the second decimal place, 0.01.

Why is a pip different on yen pairs?#

One yen is worth far less than one dollar or one euro. So yen pairs are priced with fewer decimals, like 150.25. That makes one pip on these pairs 0.01.

Is a pip the same as a point?#

Not always. Many brokers quote one extra digit, and some call that last digit a point or a pipette. Ten pipettes make one pip. Check how your broker counts before you set a stop.

How do I count the pips a trade made?#

Take the closing price minus the opening price. Then divide by the pip size. On EUR/USD, a move from 1.1000 to 1.1050 is 0.0050 divided by 0.0001, which is 50 pips. The forex profit calculator does this for you.

Sources

Understand the numbers