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PepperstoneForex Pip Calculator
Written by Steven Hatzakis
Edited by John Bringans
Fact-checked by Joey Shadeck
Forex traders track the smallest movements in the exchange rates of currencies in the global forex market. Fluctuations in exchange rates can be as small as thousandths of a cent. A “pip” is a value traders use to measure tiny price shifts in the forex market.
Traders must be able to calculate the value of a pip quickly and accurately. Our Pip Calculator can calculate the value of a pip for a given trade in a matter of seconds – and it’s easy to use.
Learn more about forex
What is Forex Trading? | What is Currency Trading? | What is a Pip? | Forex Pip Calculator | What is Leverage? | How to Start Forex Trading
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About the pip calculator
I’ve been calculating pip values as a forex trader for over twenty years. I developed this Pip Calculator to help beginner forex traders familiarize themselves with pip calculations.
Using the Pip Calculator
Here’s a simple set of instructions for using this Pip Calculator:
- Select the Account Currency (or, the base currency for a given currency pair) from the dropdown menu.
- Input your desired Trade Size.
- Select the Quote Currency for your chosen currency pair from the dropdown menu. For example, for the EUR/USD, you would enter USD as the Quote Currency and EUR as the Account Currency.
- Input an applicable Exchange Rate (optional).
- Click “Calculate” to see the value of one Pip based on your entered trade details.
Note: This Pip Calculator may produce inaccuracies if used incorrectly. Always double-check your results. This Pip Calculator is an educational resource; I recommend calculating pips using your forex broker’s trading software when placing actual forex trades. I've tested over 60 forex brokers; check out my picks for the best forex brokers.
What are pips?
A pip is a unit of measurement used for tracking tiny changes in the exchange rate of an international currency. Pips are small enough to measure fractions of a cent; they provide forex traders with an incredible degree of price precision when quoting exchange rates or valuing currencies. One pip is the equivalent of one one-hundredth of a percent (1/100th of 1%).
How do you calculate the value of a pip without a calculator?
For nearly 25 years, I’ve relied upon this quick, easy method for pip value calculation.
1 pip is worth roughly $1 per 10,000 units of currency. Remember that this scales up and down; that same pip is worth roughly 10 cents per 1,000 units of currency, or $10 per 100,000 units.
- 1,000 units: 1 pip = $0.10
- 10,000 units: 1 pip = $1.00
- 100,000 units: 1 pip = $10.00
- 1,000,000 units: 1 pip = $100.00
- 10,000,000 units: 1 pip = $1000.00
- 100,000,000 units: 1 pip = $10,000.00
- 1 billion units: 1 pip = $100,000.00
Remember: The above estimates are just that – estimates. The given exchange rate and base currency may change the exact pip value.
It’s good practice as a trader to understand the formula for calculating the value of a pip when trading forex.
Don’t worry: The formula for calculating pip values isn’t overly complicated.
To determine the value of a pip for a given currency pair, take the pip format (0.0001 in most cases) for the pair in question and multiply it by the current exchange rate. Then, multiply that figure by the trade size. This will give you the value of one pip for that specific trade.
Let’s look at an example:
The pip format is 0.0001, and our example exchange rate is 1.1234.
0.0001 x 1.1234 = 0.00011234 pips.
Our trade size will be 100,000 units.
0.00011234 x 100,000 = 11.234.
For this trade, one pip will be worth roughly $11.23.
Note: The larger the trade value and trade size, the larger the value of each pip (and vice versa). Check out my Position Size Calculator to learn more about the relationship between the size of your trade and your trading strategy.
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Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses.Read more on forex trading risks.