Forex Profit / Loss Calculator
Before you place a trade – or while you weigh closing one – it pays to know exactly what the move from entry to exit is worth. Enter your direction, lot size, entry and exit prices and the pip value, and this calculator returns the pips gained or lost and the resulting cash profit or loss on the position.
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Formula: direction = +1 for buy, −1 for sell; Pips = ((Exit − Entry) ÷ Pip size) × direction; Gross P&L = Pips × Pip value per lot × Lots. Net P&L = gross result − additional execution costs + whole-position financing. Spread and slippage are in pips, round-trip commission is per lot, and financing is signed: cost −, income +. Do not deduct costs already reflected in execution prices.
How the profit / loss calculator works
Every forex trade resolves to a simple chain: how far price moved in pips, multiplied by what each pip is worth, multiplied by how many lots you held. The direction flips the sign – a long position profits when price rises, a short position profits when it falls – so the calculator applies +1 for a buy and −1 for a sell.
First it measures the raw move by subtracting your entry price from your exit price and dividing by the pip size to express it in pips. It then multiplies those pips by the direction so a favourable move always reads positive, multiplies by your pip value per lot and by the number of lots, and you get the cash profit or loss in your account currency.
Worked example
Before additional costs or financing, buy 1 lot of EUR/USD at 1.1000 and close at 1.1050, pip value $10 per lot. Pips = ((1.1050 − 1.1000) ÷ 0.0001) × 1 = +50 pips. P&L = 50 × $10 × 1 = +$500. Had you been short the same move, pips would read −50 and the P&L −$500.
Why pip value drives the result
The same 50-pip move is worth far more or far less depending on your lot size and the pair's pip value – that is why getting the pip value right is essential. Compute it for any pair and account currency with the Pip Calculator, then size the trade so the loss leg fits your plan using Risk per trade.
Frequently asked questions
How are pips calculated from prices?
Why does direction matter?
What pip value should I use?
Gross result, costs and net result
A one-lot EUR/USD long from 1.1000 to 1.1050 at 10 USD/pip/lot gains 50 pips and 500 USD gross. If those prices exclude 1 pip of spread and 1 pip of slippage, round-trip commission is 5 USD/lot and financing is −2 USD, net profit is 473 USD. With actual execution prices, spread is usually already reflected in the ask/bid difference: do not deduct it again. Financing is entered for the whole position, whereas commission is per lot. Changing conversion rates, platform rounding and omitted costs can explain differences from the account statement.
