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Pip Calculator

What is a pip calculator?

A pip calculator is an essential trading tool for risk management. The calculator is used to work out the pip value of forex pairs, precious metals, indices, and more, in the account currency.

How does our pip calculator work?

To calculate the value of a pip, the Axi pip calculator multiplies one pip (usually 0.0001) by the trade size (in lots), and dividing this by the real-time market rate of forex pair.

The calculation formula

Pip value = (Pip in decimal form * Trade Size in lots) / Exchange rate

How to use the calculator


Account base currency: GBP
Instrument: AUS200
GBPUSD rate: 1.79
Trade size: Lots
Trade size: 5
The pip size is 1, that is, one pip is one AUD of the AUS200 price. Also, for a trade size of 5 lots, we see that for a one pip movement, position will gain or lose 2.79 GBP

1 AUD per pip per lot * 5 lots / 1.79 AUD per GBP = 2.79 GBP per pip Prices at time of calculation

Frequently Asked Questions

A “pip” – which stands for “Point in Percentage” (or “Price Interest Point”) – is the smallest change in value between a currency pair. A pip is based on the last decimal of the price of the quote currency. For instance, when the GBP/USD goes from 1.2022 up to 1.2024, there is a change of 2 pips.


EUR/USD = 1.0718
USD/CHF = 0.9267
EUR/GBP = 0.8916
Identifying the pip depends on the currency pair you are trading. The majority of the pairs are priced out to four decimals, with the exception of pairs that include the Japanese Yen.

  • For most FX pairs, 1 pip is 0.0001 and represents any movement in the fourth decimal place (e.g., 1.2022 -> 1.2024)
  • For FX pairs with the Japanese Yen (e.g., USD/JPY; GBP/JPY; EUR/JPY), 1 pip is 0.01 and represents any movement in the second decimal place (e.g., for USD/JPY: 131.91 -> 131.92)

Many forex brokers go beyond the standard pip by also quoting fractional pips, or pipettes, which represent a “tenth of a pip”. When quoted, fractional pips always follow the pip as a 5th decimal (or 3rd decimal if the currency pair includes the Japanese Yen).


EUR/USD = 1.07183
USD/CHF = 0.92676
EUR/GBP = 0.89165

In trading, a pip value is the calculated value per pip or, in other words, the amount of capital that each pip movement translates to. Depending on the pip movement, the pip value may signify a profit or a loss for the trader.

Currency pairs in forex trading are commonly traded in “lots”, where a “lot” is the number of currency units that a trader buys or sells. There are four lot sizes – standard, micro, mini, and nano – with the standard lot size equal to 100,000 units of currency.

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