Free Pip Value Calculator
Calculate the exact value of one pip for any forex currency pair. Select your account currency, pair, and lot size to see pip values for standard, mini, and micro lots.
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Try TradeZella →How Pip Value Is Calculated
A pip (percentage in point) is the smallest standard unit of price movement in forex. For most currency pairs, one pip equals 0.0001 (the fourth decimal place). For JPY pairs, one pip equals 0.01 (the second decimal place). The dollar value of that pip depends on the pair you are trading, your lot size, and the current exchange rate.
Pip Value = Pip Size × Lot Size (units) / Exchange Rate
For pairs where your account currency is the quote currency, the exchange rate divisor is 1 (no conversion needed).
There are two scenarios to understand. When USD is the quote currency (the second currency in the pair), the pip value is fixed. When USD is the base currency or not part of the pair, the pip value fluctuates with the exchange rate.
Example: EUR/USD
Pair: EUR/USD (USD is the quote currency)
Lot Size: 1 standard lot (100,000 units)
Pip Size: 0.0001
Pip Value = 0.0001 × 100,000 = $10.00 per pip
For a mini lot (10,000 units): $1.00 per pip. For a micro lot (1,000 units): $0.10 per pip.
Because USD is the quote currency in EUR/USD, the pip value is always $10 per standard lot, regardless of the exchange rate. This also applies to GBP/USD, AUD/USD, and NZD/USD.
Example: USD/JPY
Pair: USD/JPY at 150.00 (JPY is the quote currency)
Lot Size: 1 standard lot (100,000 units)
Pip Size: 0.01 (JPY pairs use the second decimal)
Pip Value = 0.01 × 100,000 / 150.00 = $6.67 per pip
As the USD/JPY rate moves, the pip value in USD changes accordingly.
Why Pip Value Matters
Knowing your pip value is the foundation of forex risk management. Without it, you cannot accurately size your positions or calculate how much you stand to gain or lose on a trade. Here is why it is essential:
- Position sizing: Once you know the pip value, you can calculate the exact lot size for any given stop loss and risk amount.
- Risk per trade: If your stop loss is 20 pips and each pip is worth $10, your total risk is $200. You need this number before every trade.
- Cross-pair awareness: Pip values differ across pairs. Trading GBP/JPY with the same lot size as EUR/USD does not mean the same dollar risk. Always check.
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Frequently Asked Questions
What is a pip in forex?
A pip is the smallest standard price move in forex. For most pairs, it is the fourth decimal place (0.0001). For JPY pairs, it is the second decimal place (0.01).
How much is 1 pip worth?
For a standard lot (100,000 units) on EUR/USD, one pip equals $10. For a mini lot (10,000 units), one pip equals $1. For a micro lot (1,000 units), one pip equals $0.10.
Does pip value change with different currency pairs?
Yes. When your account currency matches the quote currency of the pair, the pip value is fixed ($10 per standard lot). When it does not match, the pip value changes with the exchange rate.
What is the difference between a pip and a pipette?
A pip is the fourth decimal (0.0001) and a pipette is the fifth decimal (0.00001). A pipette equals one tenth of a pip. Most brokers quote prices to 5 decimal places.
How do I calculate pip value for JPY pairs?
JPY pairs use the second decimal place (0.01) instead of the fourth (0.0001). For USD/JPY at 150.00 with a standard lot: Pip Value = 0.01 × 100,000 / 150.00 = $6.67.