How Much is a Pip in Forex? Complete 2025 Value Calculator Guide

The Short Answer

The Quick Answer

　　The value of one pip is not fixed. Its worth depends on three key factors we will explore in detail.

　　For the most commonly traded pair, EUR/USD, one pip in a standard lot (100,000 units) is typically worth $10.

　　This is a helpful benchmark, but it's just one scenario. This guide will teach you how to calculate pip value for any currency pair, any trade size, and any account currency.

What is a "Pip"？

　　Think of a pip in the forex market like a "point" for a stock. It shows the smallest standard change in price.

　　"Pip" stands for "Percentage in Point" or "Price Interest Point." It measures changes in the exchange rate between two currencies.

　　To find the pip, you look at the decimal places in a currency quote.

• For most currency pairs, like EUR/USD or GBP/USD, a pip is the fourth decimal place (0.0001).
• For pairs with the Japanese Yen (JPY), like USD/JPY, a pip is the second decimal place (0.01).

　　You may also see a smaller unit called a "pipette," which is a fractional pip. This is usually the fifth or third decimal place. While helpful for exact measures, our focus here is on the standard pip, which is the base of all forex calculations.

The 3 Determining Factors

Factor 1: Currency Pair

　　The first factor is the currency pair you are trading. The value of a pip is always shown in the quote currency.

　　The quote currency is the second currency listed in a pair.

　　For example, in the GBP/USD pair, the pip value is in U.S. Dollars (USD). In the EUR/CHF pair, the pip value is in Swiss Francs (CHF). This is the first piece of the puzzle.

Factor 2: Trade Size

　　The second, and most important, factor is your trade size, also known as the lot size. A larger trade size makes each pip worth more.

　　This means a one-pip move on a large trade is worth much more money than a one-pip move on a small trade.

　　Understanding these sizes is vital for risk management. Forex brokers offer several standard lot sizes.

　　A standard lot has 100,000 units of the base currency. Your choice directly affects your potential profit or loss per pip.

Factor 3: Account Currency

　　The final factor is the base currency of your trading account. This is the currency your account uses, such as USD, EUR, or GBP.

　　If the quote currency of the pair you traded is different from your account's base currency, a final change is needed to see the profit or loss in your own currency.

　　For instance, if your account is in EUR and you close a winning trade on USD/CAD, your profit is first in Canadian Dollars (CAD). Your broker then changes this CAD profit back into EUR at the current EUR/CAD exchange rate.

How to Calculate Pip Value

The Universal Formula

　　While the factors may seem complex, they all fit into one simple formula. You can use this to calculate the value of a pip for any currency pair.

　　The formula is:

　　Pip Value = (One Pip in Decimal Form / Exchange Rate) * Lot Size

　　This gives you the pip value in the quote currency. Let's look at the most common cases you will see.

Scenario 1: USD Quote Pairs

　　This is the easiest calculation. It applies to any pair where the U.S. Dollar is the quote currency, such as EUR/USD, GBP/USD, or AUD/USD.

　　Let's calculate the pip value for a standard lot (100,000 units) of EUR/USD.

• Step 1: The pip size for a non-JPY pair is 0.0001.
• Step 2: The lot size is 100,000 units.

　　The calculation is direct: 0.0001 * 100,000 = $10.00.

　　For any pair where USD is the quote currency, the pip value for a standard lot is $10, a mini lot is $1, and a micro lot is $0.10. This makes it a good benchmark for quick checks.

Scenario 2: USD Base Pairs

　　This case applies when the U.S. Dollar is the base currency (the first currency), such as in USD/CAD, USD/CHF, or USD/JPY. Here, the pip value changes with the exchange rate.

　　Let's calculate the pip value for a mini lot (10,000 units) of USD/CAD, assuming the current exchange rate is 1.3500.

• 　　Find the variables. The pip size is 0.0001. The exchange rate is 1.3500. The lot size is 10,000 units. The quote currency is CAD.

• 　　Use the formula. (0.0001 / 1.3500) * 10,000 = 0.7407 CAD. Each pip move is worth about 0.74 Canadian Dollars.

• 　　Change to your account currency (if needed). If your account is in USD, you must convert this value. 0.7407 CAD / 1.3500 (the USD/CAD rate) = $0.548 USD.

　　So, for this trade, one pip is worth about $0.55 USD. As you can see, the pip's value changes as the pair's exchange rate moves.

　　

Scenario 3: JPY Pairs

　　Japanese Yen pairs are special because their price is quoted to only two or three decimal places.

　　For any JPY pair, like USD/JPY or EUR/JPY, a pip is the second decimal place: 0.01.

　　Let's calculate the pip value for a standard lot (100,000 units) of USD/JPY, with an exchange rate of 148.00.

• 　　Find the variables. The pip size is 0.01. The exchange rate is 148.00. The lot size is 100,000 units. The quote currency is JPY.

• 　　Use the formula. (0.01 / 148.00) * 100,000 = 67.56 JPY. Each pip move is worth about 67.57 Japanese Yen.

• 　　Change to your account currency. Assuming a USD account, we convert the JPY value back to USD. 67.57 JPY / 148.00 (the USD/JPY rate) = $0.456 USD.

　　On this standard lot trade, one pip is worth about $4.56 USD.

　　

Scenario 4: Cross-Currency Pairs

　　Cross-currency pairs (or "crosses") are pairs that do not include the U.S. Dollar, such as EUR/GBP, AUD/NZD, or GBP/JPY.

　　The calculation follows the same logic, though it often needs a conversion. The pip value is first calculated in the quote currency and then changed to your account's base currency.

　　Let's calculate the pip value for one mini lot (10,000 units) of EUR/GBP for a trader with a USD account.

• 　　Find variables. Assume the EUR/GBP exchange rate is 0.8500. The pip size is 0.0001. The lot size is 10,000 units. The quote currency is GBP.

• 　　Calculate value in the quote currency. (0.0001 / 0.8500) * 10,000 = 1.176 GBP. Each pip is worth about £1.18.

• 　　Change to your account currency. The trader's account is in USD. We need the GBP/USD exchange rate to make the conversion. Assuming GBP/USD is 1.2500, the final step is: 1.176 GBP * 1.2500 = $1.47 USD.

　　For this EUR/GBP trade, one pip is worth $1.47 USD.

　　

A Real-Trade Walkthrough

　　

Pre-Trade Risk Checklist

　　Theory is one thing; real use is everything. We never enter a trade without defining risk in pips first. This makes risk management clear and repeatable.

　　Here is how we would approach a potential long trade on GBP/USD.

　　Step 1: The Setup. We see a potential buying chance for GBP/USD at an entry price of 1.2550.

　　Step 2: Setting the Stop-Loss. Our analysis finds a key support level at 1.2520. To protect against a false breakdown, we will set our stop-loss just below it, at 1.2515. This gives us a defined risk of 35 pips (1.2550 entry - 1.2515 stop-loss).

　　Step 3: Setting the Take-Profit. The next clear resistance level is near 1.2620. We will set our take-profit target just before that level, at 1.2615. This gives us a potential reward of 65 pips (1.2615 target - 1.2550 entry). Our risk-to-reward ratio is nearly 1:2.

　　Step 4: Calculating Position Size. Now we connect pips to dollars. We know our risk is 35 pips. If we decide to risk $100 on this specific trade, we can calculate our position size.

　　For GBP/USD, a mini lot pip (0.10 lots) is worth $1. A 35-pip risk on one mini lot would be a $35 loss. To risk our target of $100, we need to trade a larger size: $100 risk / $35 risk per mini lot = ~2.85 mini lots. We would trade 2 mini lots and 8 micro lots (or 28 micro lots total).

　　

Post-Trade Analysis

　　Let's continue the story and assume the trade moved in our favor and hit the take-profit target at 1.2615.

　　The calculation of our profit is now simple. We made a total profit of 65 pips.

　　To find the money gain, we use the position size we calculated. We were trading 2.8 mini lots, where each pip is worth about $1 per mini lot.

　　The money profit is: 65 pips * $2.80 per pip = $182. This amount is before any fees are taken out.

　　By thinking in pips first, we make our risk check universal. The dollar value then helps us size the position right according to our account rules.

　　

Interactive Mental Calculator

　　

Your Pip Value Calculation

　　Let's make this practical. Grab a pen or open a notepad and follow these steps to calculate the pip value for any trade you are thinking about right now.

　　This exercise will help you understand better.

　　

Step 1: Currency Pair

　　Answer these questions about your trade.

• Your Pair: _______________
• Is it a JPY pair？ (Yes/No)
• What is the Quote Currency (the second one)？ _______________

　　

Step 2: Exchange Rate

　　Find the current exchange rate for your pair.

• Current Rate: _______________

　　

Step 3: Trade Size

　　Decide on your trade size in units.

• Standard (100,000), Mini (10,000), or Micro (1,000)？
• Your Units: _______________

　　

Step 4: The Calculation

　　Now, let's put it together.

• 　　Determine Pip Size: If you answered 'Yes' to the JPY pair question, your pip size is 0.01. If you answered 'No', your pip size is 0.0001.

• 　　Calculate Value in Quote Currency: Use the formula:

  　　(Pip Size / Current Rate) * Your Units = _______________

  　　This result is your pip value in the quote currency you found in Step 1.

  　　

　　

Step 5: Final Conversion

　　This is the last, crucial step.

• Is your account currency the same as the Quote Currency from Step 1？

　　If your answer is Yes, the result from Step 4 is your final pip value. You are done.

　　If your answer is No, you need one more change. Take the result from Step 4 and divide or multiply it by the exchange rate between your account currency and the quote currency.

　　Result from Step 4 / (Your Account Currency vs. Quote Currency Rate) = Your Final Pip Value.

　　

Why This Matters

　　

It's Your Money

　　Understanding how much a pip is worth is not just theory; it is the language of risk and reward in the forex market. It is key to protecting and growing your money.

　　Mastering this concept gives you several benefits.

• Precise Risk Management: You cannot manage risk well if you do not know the money value of a one-pip move against your position.
• Accurate Position Sizing: Pip value is the missing link needed to calculate the right lot size that matches your personal risk tolerance.
• Meaningful Goal Setting: Setting profit targets in pips is a good habit. Knowing their dollar value makes those goals real and powerful.
• Comparing Opportunities: It allows you to fairly compare the risk and reward potential of trade setups across different currency pairs.

　　

Your Next Step

　　Do not let this just be something you read. True understanding comes from use.

　　Open your trading platform or a demo account right now. Pick three different currency pairs—one major like EUR/USD, one JPY pair like USD/JPY, and one cross like EUR/GBP. Use the mental calculator worksheet to find the pip value for a micro lot on each.

　　This active practice is what changes abstract knowledge into a practical, vital trading skill.