Pip Value Calculator
Calculates the cash value of one pip on a forex position, given the pair, position size, and account currency. The result drives position sizing and stop-loss math.
This page covers the calculation; it is not trading advice.
How this calculation works
Pip value depends on three inputs: position size, pip size (0.0001 for non-JPY pairs, 0.01 for JPY pairs), and the relationship between the pair's quote currency and the account currency.
When the quote currency matches the account currency (EUR/USD on a USD account), pip value in account currency = pip × position size. No conversion is needed.
When the base currency is the account currency (USD/JPY on a USD account), pip value = (pip × position size in base) ÷ exchange rate. The result is in base currency, which equals the account currency — no further conversion.
When neither side is the account currency (EUR/GBP on a USD account), the result is in the quote currency, then converted at the cross rate to the account currency.
Formula
Three branches — same-quote, same-base, cross — depending on how the account currency relates to the pair.
- Account currency = quote currency (e.g. USD account, EUR/USD)
- 1 standard lot of EUR/USD priced in USD — no conversion needed.
- Account currency = base currency (e.g. USD account, USD/JPY)
- 1 standard lot of USD/JPY at 149.572.
- Cross pair (e.g. USD account, EUR/GBP)
- GBP is the quote currency; convert to the USD account at the cross rate.
Worked example
EUR/USD at 1.0850, 1 standard lot (100,000 EUR), USD account.
Pip = 0.0001. Pip value in USD = 0.0001 × 100,000 = $10 per pip.
Halve the lot to 0.50 — pip value = $5. Quarter to 0.25 — pip value = $2.50. The math is linear in lot size.
USD/JPY at 149.50, 1 standard lot (100,000 USD), USD account: pip value = (0.01 × 100,000) ÷ 149.50 = $6.69 per pip per standard lot.
Concept web
Related reading
Common questions
What determines the value of a pip?
Three inputs: the pip size (0.0001 on most pairs, 0.01 on JPY pairs), the position size in base-currency units, and the conversion from the quote currency to the account currency. A 1 standard lot of EUR/USD on a USD account at 1.0850 is 0.0001 × 100,000 = $10 per pip — no conversion needed. The same lot of USD/JPY at 149.50 produces 0.01 × 100,000 = ¥1,000 per pip, converted to USD at 1/149.50 = $6.69.
Why is the pip on a JPY pair worth less than on EUR/USD?
The pip on JPY pairs is the second decimal (0.01), not the fourth (0.0001), because the yen is quoted with two decimal places. A 100,000-unit standard lot of USD/JPY at 149.50 produces ¥1,000 of P&L per pip, which converts to about $6.69 at the current rate. The yen's lower per-unit value, plus the conversion back to the account currency, lands JPY-pair pip values consistently below USD-quoted majors.
How does the account currency change pip value?
When the quote currency of the pair matches the account currency (USD account on EUR/USD, GBP account on EUR/GBP), pip value is fixed at the per-lot unit — $10, £10 — with no conversion. When the quote currency differs (USD account on EUR/GBP), pip value is calculated in the quote currency first (here, £10 per standard lot) and then converted to the account currency at the cross rate (£10 × GBP/USD at 1.27193 = $12.72 per pip).
Does pip value change while the position is open?
For pairs where the quote currency matches the account currency, pip value is fixed for the life of the position regardless of how the price moves. For pairs where conversion is needed (USD account on USD/JPY, or any cross pair), pip value drifts as the conversion rate moves — a USD/JPY position opened at 149.50 ($6.69 per pip) shows $6.85 per pip at 146.00 and $6.45 at 155.00. The shift is small in normal conditions but compounds on large positions and long holds.
Does pip value scale linearly with lot size?
Yes. A mini lot is 1/10 of a standard lot, a micro lot is 1/100, and pip value scales at the same ratio. On EUR/USD with a USD account: 1 standard lot = $10 per pip, 1 mini lot = $1 per pip, 1 micro lot = $0.10 per pip. Entering 0.5 lots in the calculator returns $5 per pip — pip value multiplies through linearly with the lot input.
Is pip value the same as pip cost?
No. Pip value is what one pip of movement is worth in the account currency on the open position — a unit of P&L. Pip cost is a broker term for the spread paid to enter the trade, expressed as the spread in pips multiplied by pip value (a 1.2-pip spread on a 1 standard lot EUR/USD position costs $12 to open). The two figures are arithmetically related but answer different questions.