Profit/Loss Calculator

How Profit/Loss Calculation Works

Your profit or loss on a forex trade depends on the price difference between entry and exit, the direction of your trade, and the size of your position.

The Formula

For a Buy (Long) trade:

Profit/Loss = (Exit Price − Entry Price) / Pip Size × Pip Value × Lot Size

For a Sell (Short) trade:

Profit/Loss = (Entry Price − Exit Price) / Pip Size × Pip Value × Lot Size

Example

You buy 1 lot of EUR/USD at 1.0850 and sell at 1.0900:

Pips = (1.0900 − 1.0850) / 0.0001 = 50 pips

Profit = 50 × $10 × 1 = $500

Frequently Asked Questions

Does this include trading costs?

No. This calculator shows gross profit/loss based on price movement only. To see your net result, subtract the spread cost and any commissions. Use our FX Fee Calculator to estimate those costs.

What about swap fees?

Swap fees apply to positions held overnight and are not included here. Use our Swap Calculator to estimate overnight costs.

Why is selling profitable when prices fall?

When you sell (short), you're essentially borrowing the base currency, selling it at the current price, and buying it back later. If the price drops, you buy it back cheaper — and the difference is your profit.

Does lot size affect pip value?

Yes. A standard lot (1.0) has a pip value of approximately $10 for EUR/USD. A mini lot (0.1) has $1 per pip, and a micro lot (0.01) has $0.10 per pip.