Free Trading Tool

Profit & Loss Calculator

Enter a trade’s entry, exit and size to see the result in both money and pips, for longs and shorts alike.

Enter your details and press calculate.

How to use the profit and loss calculator

Choose whether the trade was a buy or a sell, set the instrument type so pips are counted correctly, then enter your entry price, exit price, and position size. The calculator returns the gross profit or loss in the quote currency along with the move in pips. It does not subtract spread, commission, or swap, so treat the figure as the result of the price move alone.

The profit and loss formula

Units = Lots × Contract size
P&L (quote currency) = (Exit − Entry) × Units × Direction
Pips = (Exit − Entry) ÷ Pip size × Direction

A one standard lot long on EUR/USD from 1.1000 to 1.1040 moves 40 pips. The money result is (1.1040 − 1.1000) × 100,000 = 400 USD. Flip it to a short and the same move becomes a 400 USD loss, because price rose against the position.

From gross to net

The price move is only part of the picture. Your real result is the gross figure minus the spread you paid on entry, any commission, and swap if you held overnight. A strategy that looks profitable on paper can turn break-even once costs are counted, which is why we test every setup net of a realistic spread and fee on the methodology page. Size the trade first with the position size calculator so the loss side is always controlled.

Frequently asked questions

How do I calculate profit or loss on a forex trade?

Take the difference between your closing price and opening price, multiply it by the number of units traded, and apply the direction. For a long trade you profit when the price rises; for a short trade you profit when it falls. The result is your profit or loss in the quote currency of the pair.

How do I convert price movement into pips?

Divide the price difference by the pip size. For most pairs the pip size is 0.0001, so a move from 1.1000 to 1.1040 is 40 pips. For yen pairs and metals the pip size is 0.01. The calculator shows both the money result and the move in pips.

What is the difference between a long and short trade?

A long, or buy, trade profits when the price goes up: you close higher than you opened. A short, or sell, trade profits when the price goes down: you close lower than you opened. The calculator handles both by flipping the sign of the result based on the direction you pick.

Does this include spread and commission?

No. This is the gross profit or loss on the price move alone. Real net results are slightly lower once you subtract the spread, any commission, and overnight swap charges. Always factor those costs in when you judge whether a strategy is genuinely profitable.

How do I work out my return on the account?

Divide the profit or loss by your account balance and multiply by 100. Pairing this with the position size calculator lets you see, before you enter, how a win or a loss will move your account in percentage terms.

More trading tools

Pip Calculator →Position Size Calculator →Pivot Point Calculator →

These calculators are provided for educational purposes only and assume standard contract sizes. Always confirm pip values, margin, and contract specifications with your broker before trading. Trading involves substantial risk. Read the full disclaimer.