What is a profit and loss calculator?
A profit and loss (P/L) calculator shows what a trade would make or lose given your entry, exit, lot size and direction. Running the numbers before you enter helps you check the reward is worth the risk, and translate a move in pips into real money.
How to calculate profit and loss
Worked example: Buy 1 lot of EUR/USD at 1.0800 and exit at 1.0850. The move is +50 pips. P/L = (1.0850 − 1.0800) × 100,000 × 1 = +$500. A sell trade simply flips the sign.
Frequently asked questions
How are pips converted to dollars?
Pip value depends on the instrument’s pip size, contract size, lot size and the quote-to-USD rate. This calculator applies live rates so the dollar figure is accurate for forex pairs and gold.
Does it work for sell (short) trades?
Yes. Choose Sell / Short and the calculator flips the direction, so a falling price produces a profit.
Is this an exact figure?
It is accurate to the inputs and live rate, but excludes broker spread, commission and swap/overnight fees, which vary by broker.