What is pip value?
A pip ("percentage in point") is the smallest standard price increment in a currency pair. For most majors that's the 4th decimal — EUR/USD moving from 1.0850 to 1.0851 is one pip. For yen pairs it's the 2nd decimal — USD/JPY moving from 155.42 to 155.43 is one pip.
Pip value tells you how much money one pip is worth on your specific position size, accounting for the quote currency and your account currency.
How is it calculated?
The base formula is straightforward:
# pip value formula pip_in_quote = units × pip_size × lots
pip_in_account = pip_in_quote / quote-to-account FX rate For EUR/USD at 1 lot (100,000 units), pip_size 0.0001: 100000 × 0.0001 × 1 = $10 USD. Convert to AUD at current rate.
Why pip value matters for risk
Risk-per-trade is your stop-distance × pip value. If you risk 1% of a $10,000 account ($100) and your stop is 25 pips on EUR/USD, you'd size: $100 / (25 × $10) = 0.4 lots.
Limitations of this calculator
- The conversion rates are static (mid-2026 indicative values). For execution-level precision, use your broker's platform.
- Yen pairs use 0.01 pip-size, gold uses 0.01 with 100-unit contracts — both are handled here.
- This calculator does not account for spread, commission or swap.