Free calculator
Pip Value Calculator
A pip is a tiny price step. This tool shows what one of those steps is worth in dollars at your trade size.
- Forex
- Gold
Covers pairs quoted in US dollars, yen pairs, gold, and a custom pip size for anything else.
Pip = 4th decimal place. Pip value calculated directly in USD.
That means a 10-pip move equals $100.00. A 50-pip move equals $500.00.
For learning and planning. The numbers are math on what you type, not a prediction.
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What is pip value?
Pip value is how much money you win or lose when price moves one pip. It changes with the pair and with your trade size.
You need it for almost every other trading calculation: position size, profit, spread cost and swap all use it.
The formula in plain words
- Pip value = units traded times the pip size.
- That gives the value in the second currency of the pair. If that currency is not US dollars, divide by the exchange rate to turn it into dollars.
Pip value = Units × Pip size For USD/JPY in dollars: (Units × 0.01) ÷ USD/JPY rate
Worked example
One standard lot (100,000 units) of EUR/USD and of USD/JPY
- 1EUR/USD: 100,000 × 0.0001 = $10 per pip.
- 2USD/JPY: 100,000 × 0.01 = 1,000 yen per pip.
- 3Turn the yen into dollars at a rate of 150: 1,000 ÷ 150 = about $6.67 per pip.
One standard lot is about $10 per pip on EUR/USD and about $6.67 per pip on USD/JPY at 150.
Common mistakes
- Assuming every pair is $10 per pip. Only pairs quoted in US dollars are.
- Using an old exchange rate for a yen pair. The pip value moves when the rate moves.
- Mixing up pips and pipettes. Many platforms show a fifth digit, and that last digit is one tenth of a pip.
Questions people ask
What is a pip?
For most pairs a pip is the fourth number after the dot, 0.0001. For yen pairs it is the second number after the dot, 0.01.
What is a pip worth on a micro lot?
A micro lot is 1,000 units. On EUR/USD that is 1,000 × 0.0001 = $0.10 per pip.
Why does my yen pair pip value change every day?
Because it depends on the USD/JPY rate. When that rate moves, the dollar value of 1,000 yen moves too.
Learn the idea behind it
The calculator does the math. These free lessons explain when and why to use it.
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Demo first. Trading has risk of loss. Education, not financial advice.