Free calculator
Forex Spread Cost Calculator
The spread is the gap between the buy price and the sell price. You pay it on every trade. This tool shows how much that adds up to.
- Forex
- Gold
- Indices
Built for forex pairs. For gold or an index, enter the spread in points and the value of one point.
For learning and planning. The numbers are math on what you type, not a prediction.
Open TradingView chartsAffiliate link. Charting software, not a signal.
What is the spread cost?
Every trade starts a little in the red because you buy at the higher price and sell at the lower one. That gap is the spread.
One spread looks tiny. Many trades a month add up, and this shows the total next to your usual target.
The formula in plain words
- Cost per trade = spread in pips times lots times the pip value of one lot.
- Cost per month = cost per trade times trades per month.
Cost per trade = Spread pips × Lots × Pip value per lot
Worked example
A 1.2 pip spread, 0.50 lots, 20 trades a month
- 1Per trade: 1.2 × 0.50 × $10 = $6.
- 2Per month: $6 × 20 = $120.
- 3Per year: $120 × 12 = $1,440.
- 4If your usual target is 20 pips ($100 at this size), the spread is $6 ÷ $100 = 6% of it.
At this size and pace the spread costs about $120 a month, and eats about 6% of each 20 pip target.
Common mistakes
- Checking the spread only when the market is calm. Spreads often widen around news and when markets open.
- Forgetting commission. Some accounts have a small spread plus a fee per lot.
- Trading very small targets. The smaller the target, the bigger the share the spread takes.
Questions people ask
What is a normal spread on EUR/USD?
It depends on the broker, the account type and the time of day. Check your broker's live quote and its cost page rather than trusting a single number.
Is a zero spread account free?
Usually not. Many raw or zero spread accounts charge a commission per lot instead.
Why does the spread get wider at news time?
Fewer people are willing to buy and sell at fair prices in that moment, so the gap between the two prices grows.
Learn the idea behind it
The calculator does the math. These free lessons explain when and why to use it.
Need a broker to practice?Start with a Genesis demo accountPaid partner link
Demo first. Trading has risk of loss. Education, not financial advice.