Pip Calculator
Calculate the monetary value of a pip for any forex currency pair and lot size. Essential for position sizing and risk management.
What Is a Pip in Forex Trading?
A pip (percentage in point) is the smallest standard unit of price movement in a forex currency pair in a forex currency pair. For most currency pairs, a pip is the fourth decimal place — a movement of 0.0001. For Japanese yen pairs (USD/JPY, EUR/JPY, GBP/JPY), a pip is the second decimal place — a movement of 0.01.
If EUR/USD moves from 1.0850 to 1.0860, that is a 10-pip movement. If USD/JPY moves from 150.50 to 150.75, that is a 25-pip movement. Understanding pip value is essential for calculating profit, loss, and risk on any forex trade.
How to Calculate Pip Value
The pip value formula depends on whether the US dollar is the quote currency (second in the pair) or the base currency (first in the pair).
When USD Is the Quote Currency (EUR/USD, GBP/USD, AUD/USD, NZD/USD)
= 0.0001 × 100,000 = $10.00 per pip (standard lot)
For USD-quoted pairs, the pip value is always fixed in USD: $10 per standard lot, $1 per mini lot, $0.10 per micro lot. This makes these pairs the simplest to calculate.
When USD Is the Base Currency (USD/JPY, USD/CHF, USD/CAD)
Exchange rate: 150.50. Lot size: 1 standard lot (100,000 units).
Pip size for JPY pairs = 0.01
Pip Value = (0.01 / 150.50) × 100,000 = $6.64 per pip
Exchange rate: 0.8850. Lot size: 1 standard lot (100,000 units).
Pip Value = (0.0001 / 0.8850) × 100,000 = $11.30 per pip
Cross Pairs (EUR/GBP, EUR/JPY, GBP/JPY)
For cross pairs, you first calculate the pip value in the quote currency, then convert to your account currency using the current exchange rate. The calculator above handles this automatically.
Pip Value Quick Reference Table
| Pair | Pip Size | Standard Lot | Mini Lot | Micro Lot |
|---|---|---|---|---|
| EUR/USD | 0.0001 | $10.00 | $1.00 | $0.10 |
| GBP/USD | 0.0001 | $10.00 | $1.00 | $0.10 |
| USD/JPY* | 0.01 | ~$6.64 | ~$0.66 | ~$0.07 |
| USD/CHF* | 0.0001 | ~$11.30 | ~$1.13 | ~$0.11 |
| AUD/USD | 0.0001 | $10.00 | $1.00 | $0.10 |
| USD/CAD* | 0.0001 | ~$7.25 | ~$0.73 | ~$0.07 |
| NZD/USD | 0.0001 | $10.00 | $1.00 | $0.10 |
*Values marked with ~ are approximate and vary with the exchange rate. Use the calculator above for exact values.
Why Pip Value Matters for Risk Management
Knowing your pip value is the foundation of forex risk management. Without it, you cannot calculate how much money you stand to gain or lose on a trade, and you cannot size your position correctly relative to your account.
Consider a trader with a $10,000 account who wants to risk 1% ($100) per trade. If their stop-loss is 20 pips on EUR/USD:
Risk per trade: $100. Stop-loss: 20 pips. Pip value needed: $100 / 20 = $5 per pip.
Standard lot = $10/pip (too large). Mini lot = $1/pip (too small). Optimal: 0.5 standard lots = $5/pip.
Use the Position Size Calculator for this calculation automatically.
Without knowing that EUR/USD pip value is $10 per standard lot, this calculation is impossible. The pip calculator is the first step; the position size calculator is the second. Together they form the core risk management toolkit for forex traders.
Pips vs Pipettes: What Is the Fifth Decimal?
Many brokers quote prices to 5 decimal places for standard pairs (e.g., EUR/USD at 1.08501 instead of 1.0850) or 3 decimal places for JPY pairs (150.501 instead of 150.50). The fifth decimal is called a pipette or fractional pip.
10 pipettes = 1 pip. A movement from 1.08500 to 1.08510 is 1 pip (or 10 pipettes). Pipettes provide more precise pricing and tighter spreads but do not change the fundamental pip value calculation.
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A pip is the smallest standard price movement in forex — 0.0001 for most pairs, 0.01 for JPY pairs. If EUR/USD moves from 1.0850 to 1.0851, that is 1 pip.
For USD-quoted pairs (EUR/USD, GBP/USD): $10 per standard lot, $1 per mini lot, $0.10 per micro lot. For other pairs, pip value varies with the exchange rate. Use the calculator above.
Depends on account size and lot size. For a $10,000 account trading 1 standard lot on EUR/USD: 1% = $100 / $10 per pip = 10 pips. For 1 mini lot: $100 / $1 per pip = 100 pips.
A pipette is 1/10th of a pip — the fifth decimal place (0.00001). 10 pipettes = 1 pip. Pipettes provide more precise pricing but don't change pip value calculations.
Because JPY is valued at roughly 1/100th of a USD, the meaningful price movement is at the second decimal place (0.01) rather than the fourth. The pip is still the smallest standard unit — just measured differently.