How to Calculate Forex Profit and Loss (With Examples)
How to calculate forex profit and loss on any trade: the formula, long and short trades, yen pairs, crosses, costs and partial closes, with examples.
Your platform shows a profit figure on every open trade, but if you cannot work it out yourself, you cannot check it, plan a trade around it or spot when a position is far bigger than you meant. Learning how to calculate forex profit takes one formula and three small habits.
Quick answer: To calculate forex profit, take the exit price minus the entry price (entry minus exit for a short) and multiply by the number of units traded. That gives the result in the quote currency. Convert it into your account currency at the current exchange rate, then subtract commission and swap to get your net profit or loss.
How to calculate forex profit: the core formula
Every forex trade, on every pair, comes down to one line of arithmetic:
Profit or loss = (exit price − entry price) × units tradedThat is for a buy. For a sell, you swap the two prices round: entry price − exit price. Either way, a positive answer is a profit and a negative one is a loss.
Two things make this formula work, and both come from how currency pairs are written. The units are counted in the base currency, the first currency in the pair. One lot is 100,000 units, so 0.20 lots of EUR/USD is 20,000 euros. The price is written in the quote currency, the second one, so the price difference is a number of dollars per euro. Multiply dollars-per-euro by euros and the euros cancel out. What is left is a result in the quote currency, which for EUR/USD is US dollars.
Take a simple trade. You buy 0.20 lots of EUR/USD at 1.0820 and close it later at 1.0875.
- Price difference: 1.0875 − 1.0820 = 0.0055
- Units: 0.20 × 100,000 = 20,000
- Profit: 0.0055 × 20,000 = $110
In a US dollar account, that is the answer before costs; nothing needs converting.
The pip route gives the same answer
You may be used to a different method: pips moved × pip value × lots. It is the same calculation in a different order. A move from 1.0820 to 1.0875 is 55 pips. On EUR/USD, one pip on a standard lot is worth $10, so on 0.20 lots it is $2. Then 55 × $2 = $110, exactly as before.
The pip route is handy for quick mental checks on dollar-quoted pairs. The price-difference route is better for everything else, because it never asks you to remember a pip value that changes from pair to pair. If pips are still new, our guide to what a pip is in forex explains the unit, and the Academy lesson on pips and lots has short exercises.
Type the two prices from the example into the counter below. It shows the 55-pip move and its value at each lot size; 0.20 lots is two mini lots, so double the mini-lot figure.
The highlighted digit is the pip. For USD/JPY the pip is the second decimal and its dollar value depends on the price.
Long and short trades: which price minus which
The direction of the formula follows the direction of the trade. When you buy (go long), you profit if the price rises, so the calculation is exit minus entry. When you sell (go short), you profit if the price falls, so it is entry minus exit. If you are not sure which way round to put the numbers, ask yourself which price you sold at and which you bought at. Profit is always sell price − buy price, whichever came first.
The second detail is which side of the quote each price comes from. Every forex quote has two prices. You buy at the ask, the higher one, and sell at the bid, the lower one. The gap between them is the spread. So:
- A long trade opens at the ask and closes at the bid.
- A short trade opens at the bid and closes at the ask.
The ask (1.0820) is the price the broker charges you. If you buy EUR/USD, you buy at the ask.
You buy at the ask and sell at the bid. A long EUR/USD trade opened here fills at 1.0820, the ask; it will later close at whatever the bid is at that moment.
Here is a short trade worked through. You sell 0.10 lots of GBP/USD at the bid, 1.2710, because you expect the pound to weaken against the dollar. Later you close it by buying back at the ask, 1.2650.
- Price difference: 1.2710 − 1.2650 = 0.0060 (entry minus exit, because it is a short)
- Units: 0.10 × 100,000 = 10,000 pounds
- Profit: 0.0060 × 10,000 = $60
This is why a new trade always shows a small loss the moment it opens. A long bought at the ask is immediately valued at the bid, so it starts one spread behind. It is also why measuring a trade from your chart can mislead you. Most charts plot the bid. If you read both your entry and exit off a bid chart, a long trade looks one spread better than it really was. Use the fill prices in your trade history instead. Our guide to the bid, ask and spread explains which price your chart shows, and long vs short in forex covers why selling first is routine in currencies.
Losses on a short work the same way. Had GBP/USD risen to 1.2760 instead, the calculation would be 1.2710 − 1.2760 = −0.0050, and −0.0050 × 10,000 = −$50. The sign tells you which way it went; you do not need a separate formula for losses.
Converting profit into your account currency
The formula always gives you a result in the quote currency. When that is also your account currency, you are done. When it is not, there is one more step.
There are three situations for a US dollar account, and the same logic works for any account currency.
The dollar is the quote currency. EUR/USD, GBP/USD, AUD/USD and NZD/USD all end in USD. The result is already in dollars, so no conversion is needed. Both trades above fall into this case.
The dollar is the base currency. On USD/JPY, USD/CAD and USD/CHF, the result arrives in yen, Canadian dollars or Swiss francs. To turn it into dollars, divide by the pair’s own price, because the price tells you how many yen (or francs, or Canadian dollars) one dollar costs.
The dollar is in neither place. On a cross such as EUR/GBP or EUR/JPY, the result is in pounds or yen, and you convert it with a third rate that links that currency to the dollar. For pounds that is GBP/USD; since GBP/USD prices one pound in dollars, you multiply.
How to calculate profit on USD/JPY
Yen pairs need one extra moment of care, because the price has only two decimals and a pip is the second one (0.01), not the fourth. The formula does not change; you just keep the decimal point where it is.
Say you buy 0.50 lots of USD/JPY at 150.20 and sell at 151.05.
- Price difference: 151.05 − 150.20 = 0.85 yen per dollar (that is 85 pips)
- Units: 0.50 × 100,000 = 50,000 dollars
- Result in yen: 0.85 × 50,000 = ¥42,500
- Converted at the closing price: 42,500 ÷ 151.05 = about $281.36
The trap is the decimal. If you counted 0.85 as 85 and multiplied by 50,000, you would get ¥4,250,000, a hundred times too big. Write the price difference as it appears on the screen, with its decimal point, and the formula takes care of the rest.
How to calculate profit on a cross pair
Now take EUR/GBP. You buy 0.30 lots at 0.8450 and sell at 0.8492, with GBP/USD trading at 1.2700.
- Price difference: 0.8492 − 0.8450 = 0.0042
- Units: 0.30 × 100,000 = 30,000 euros
- Result in pounds: 0.0042 × 30,000 = £126
- Converted: 126 × 1.2700 = $160.02
Which exchange rate to use, and when to divide or multiply
A simple rule covers every case. Find the pair that links the currency your profit is in to your account currency. If your account currency is the base of that pair, divide. If it is the quote, multiply. For a dollar account converting yen, the linking pair is USD/JPY and the dollar is its base, so you divide. For pounds, the linking pair is GBP/USD and the dollar is its quote, so you multiply.
The same rule works for any account. With a pound account, a $110 profit on EUR/USD is converted through GBP/USD, where the pound is the base: 110 ÷ 1.2700 = about £86.61.
The conversion rate keeps moving while a trade is open, so the account-currency value of a position can drift even when the pair itself is still. Platforms typically show an open trade already converted at the live rate and book the closed result at the rate when you close, but the exact method varies, so your broker’s contract specifications are the place to check. The difference is usually small. Had you converted the USD/JPY profit at the entry price of 150.20 rather than 151.05, you would have got $282.96 instead of $281.36.
Our guide to base currency vs quote currency explains why profit lands in the quote currency in the first place, and pip value by currency pair turns the same conversion rule into a per-pip figure for every common pair. The Academy lesson on currency pairs and quotes covers the reading rule behind it.
Spread, commission and swap: from gross to net profit
The price formula gives you the result of the price move. What actually reaches your balance is that figure minus the costs of trading. There are three to account for, and each is handled differently.
The spread is already in your prices. If you use your real fill prices, buying at the ask and selling at the bid, the spread has been paid inside the formula. Do not subtract it a second time. The only time you need to deduct it separately is when you have measured the move from a chart or from mid prices.
Commission is a fixed charge per lot. Raw-spread accounts usually charge one, quoted per lot either per side or for the round turn (opening and closing together). A $7 round-turn commission on 0.20 lots costs 0.20 × $7 = $1.40. Standard accounts usually charge no commission and build their fee into a wider spread instead.
Swap is charged or paid for each night a position is held. It reflects the interest rate difference between the two currencies plus the broker’s markup, and it can be a cost or a small credit depending on the pair and direction. If a long EUR/USD position costs $4.50 per lot per night, two nights on 0.20 lots costs 0.20 × $4.50 × 2 = $1.80.
Here is how those pieces stack up for the EUR/USD trade from the first section. Set the inputs below to your own numbers to see how the total changes with size and holding time.
Spread = pips × $10 × lots. Commission and swap are quoted per lot. A trade must earn more than the total before it makes anything.
With a 1-pip spread, the spread on 0.20 lots is worth $2. Measured off a bid chart, the trade would have looked like 56 pips, or $112. Your real fills gave $110. Take off commission and swap and the net profit is $106.80.
On a trade that moved 55 pips, the costs took about 5% of the result. On a trade that moved only 8 pips, the same costs would take most of it. That is why short-term traders watch costs so closely, and why the full picture, including slippage and non-trading fees, is worth reading in our guide to forex trading costs. Swap is covered in detail in what is swap in forex, and the Academy lesson on trading costs shows how to compare them between account types. Regulated firms must disclose their costs and charges before you trade; in the UK, the Financial Conduct Authority sets those rules.
Many platforms show commission and swap in separate columns from the profit figure on each trade.
Realised vs floating profit: balance and equity
A trade’s profit exists in two states. While the position is open, the figure on your screen is floating (or unrealised) profit or loss. It is calculated with the same formula, using the price you could close at right now: the bid for a long, the ask for a short. It changes with every tick and means nothing for certain until you close. Once you close, the result is realised: it is fixed, and it is added to or taken from your account balance.
Your platform tracks this with two numbers.
- Balance is the money in your account from closed trades, deposits and withdrawals. It does not move while a trade is open.
- Equity is your balance plus or minus the floating profit or loss on all open positions. It moves constantly.
The difference matters for three reasons. First, floating profit is not yours yet. A trade showing +$80 can close at a loss, and treating an open gain as banked money is how people talk themselves out of their own exit plan. Second, your broker uses equity, not balance, to work out your free margin and margin level. A large floating loss can trigger a margin call even though your balance looks healthy. Our guide to what margin is in forex and the Academy lesson on leverage and margin explain how that works. Third, swap is usually added to the open position each night, so a trade held for weeks can show a floating figure that drifts slowly even when price goes nowhere.
When you record a trade in your journal, record the realised figure, after costs.
Partial closes, scaling in and profit as a percentage
Real trades are not always opened and closed in one go. You might close half a position at a first target and leave the rest running, or add to a position at a second price. The formula still works; you apply it to each piece separately and add the results.
Partial closes
Say you buy 0.40 lots of EUR/USD at 1.0800. At 1.0850 you close half, 0.20 lots, and move your stop on the rest to your entry price. Later you close the remaining 0.20 lots at 1.0890.
- First piece: (1.0850 − 1.0800) × 20,000 = $100
- Second piece: (1.0890 − 1.0800) × 20,000 = $180
- Total: $100 + $180 = $280, before costs
Had you held all 0.40 lots to 1.0890, the result would have been $360; had you closed everything at 1.0850, $200. A partial close trades some potential profit for less risk; the arithmetic shows the price of that choice.
Scaling in and the average entry price
Adding to a position works the other way round. If you buy 0.10 lots at 1.0850 and another 0.10 lots at 1.0830, many platforms show the combined position at an average entry price, here 1.0840 (the two prices weighted by size). Close all 0.20 lots at 1.0880 and the profit is (1.0880 − 1.0840) × 20,000 = $80. Check it piece by piece: 30 pips × $1 plus 50 pips × $1 is also $80. When the two pieces are different sizes, weight each price by its lots before averaging, or simply calculate each piece on its own.
Profit as a percentage and in R
A raw figure such as $110 means little until you compare it with your account and your risk. Two measures help.
As a percentage of your account. Divide the net profit by your balance before the trade. On a $5,000 account, $106.80 is 106.80 ÷ 5,000 = 2.1%.
In R, multiples of what you risked. If the EUR/USD trade had a stop at 1.0790, 30 pips below entry, the planned risk was 30 × $2 = $60. A net profit of $106.80 is 106.80 ÷ 60 = about 1.8R. Measuring in R lets you compare trades of different sizes, and it is how a risk-reward ratio turns into results over many trades. Try the trade’s levels in the visualiser below to see the planned reward-to-risk before costs.
Break-even win rate = 1 ÷ (1 + R), where R is the reward-to-risk ratio. Costs push the real figure a little higher.
Percentages cut both ways, of course. A losing trade is calculated with exactly the same formula, and most retail accounts trading leveraged forex products lose money: when the European Securities and Markets Authority (ESMA) restricted retail leverage in 2018, it cited evidence that 74% to 89% of such accounts did. Knowing how to calculate forex profit is useful precisely because it lets you calculate the loss before you click buy. The Academy lessons on position sizing and risk-reward take that planning further.
Common mistakes when calculating forex profit and loss
Assuming every pip is worth $10 a lot
The $10 figure only applies when the quote currency is your account currency. On USD/JPY at 150 it is about $6.67 per standard lot; on EUR/GBP it is around $12.70. Use the price-difference formula and convert, and you never have to rely on a remembered pip value.
Reading entry and exit off the chart
Most charts plot the bid, but you buy at the ask. Measuring a long from the chart overstates it by the spread at entry. Use the fill prices from your trade history.
Getting the yen decimal wrong
On USD/JPY, 150.20 to 151.05 is a difference of 0.85, not 85. Keep the decimal point as it appears on the screen, and remember that a pip on yen pairs is 0.01.
Converting the wrong way
Dividing when you should multiply turns a $160 profit into about $99. Ask which currency is the base of the linking pair. If it is your account currency, divide; if it is the quote, multiply.
Counting floating profit as money made
An open trade’s profit is a valuation, not a result. Plan, journal and measure performance on realised profit after commission and swap. Our guide to keeping a trading journal shows a simple format that records all three.
Frequently asked questions
How do you calculate profit in forex?
Subtract the entry price from the exit price for a buy, or the exit price from the entry price for a sell, and multiply by the number of units traded. One lot is 100,000 units. The answer is in the quote currency, so convert it into your account currency if they differ, then subtract commission and swap.
How do you calculate profit and loss on a short trade?
For a short, profit equals the entry price minus the exit price, multiplied by units. Selling 10,000 units of GBP/USD at 1.2710 and buying back at 1.2650 gives 0.0060 × 10,000 = $60. If price rises instead, the same formula gives a negative number, which is your loss.
How do you calculate profit on USD/JPY?
Take the price difference with its two decimals, multiply by the units and you have yen. Then divide by the USD/JPY price to get dollars. Buying 50,000 units at 150.20 and selling at 151.05 is 0.85 × 50,000 = ¥42,500, which is about $281 at 151.05.
Is the spread included in my forex profit?
Yes, if you calculate from your real fill prices. A long buys at the ask and sells at the bid, so the spread is already paid inside the price difference. Only subtract it separately if you measured the move from a chart or mid prices. Commission and swap must always be subtracted on top.
What is the difference between floating and realised profit?
Floating profit is the current value of an open trade, worked out at the price you could close at now. It changes with every tick and is included in your equity. Realised profit is the fixed result once the trade is closed, and it is added to your account balance.
How much is 100 pips worth?
It depends on the pair, the size and your account currency. On EUR/USD in a dollar account, 100 pips is $1,000 on one standard lot, $100 on a mini lot and $10 on a micro lot. On USD/JPY at 150, it is about $667 on one standard lot.
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