How to Calculate Pip Value: Forex, JPY Pairs, Gold and Indices
One formula covers every instrument: pip value = pip size × contract size ÷ quote-to-account rate. Worked examples for EURUSD, USDJPY, gold and indices, plus pip-difference math.
Short answer: pip value = pip size × contract size × lots, converted into your account currency. That one formula covers every instrument. For a USD account: EURUSD pays $10 per pip per standard lot (0.0001 × 100,000), USDJPY pays 1,000 yen per pip — about $6.67 at 150.00 — and gold pays $10 per 0.10 move per 100-oz lot. Indices are the exception that needs your broker's contract spec. The worked examples below cover each case, and the free pip value calculator does the arithmetic live for 60+ instruments.
The formula, once
A pip is the standard price increment of an instrument: 0.0001 for most forex pairs, 0.01 for JPY pairs. A contract (1.0 lot) is 100,000 units of the base currency in forex. So:
pip value = pip size × contract size × lots ÷ (quote currency → account currency rate)
The division at the end is the step people forget — it is only needed when the pair's quote currency (the second one) is not your account currency.
Worked examples (USD account, 1.00 lot)
| Instrument | Pip size | Calculation | Pip value |
|---|---|---|---|
| EURUSD, GBPUSD, AUDUSD… | 0.0001 | 0.0001 × 100,000 | $10.00 (fixed) |
| USDJPY at 150.00 | 0.01 | 0.01 × 100,000 ÷ 150.00 | ≈ $6.67 (floats with the rate) |
| EURGBP at GBPUSD 1.2700 | 0.0001 | 0.0001 × 100,000 × 1.2700 | ≈ $12.70 |
| XAUUSD (gold), 0.10 pip | 0.10 | 0.10 × 100 oz | $10.00 |
| US30 / NAS100 (typical $1 contract) | 1 point | 1 × contract size | $1.00 per point — broker-specific |
Scale linearly for smaller sizes: a mini lot (0.10) is one-tenth of every number above, a micro lot (0.01) one-hundredth — so EURUSD is $1.00 and $0.10 per pip respectively.
Gold: check the convention before trusting any number
Gold causes more sizing accidents than every forex pair combined, because "one pip" is not standardised. Some platforms and calculators treat a pip as a 0.10 move ($10/lot), others count every 0.01 ($1/lot), and brokers occasionally use 1-oz or 10-oz contracts instead of 100 oz. The number that never lies is in your terminal: right-click the symbol → Specification → tick size and tick value. Pip value = tick value × (pip size ÷ tick size).
Indices: points, not pips — and no universal contract
"Indices pip calculator" is really a search for point value. An index CFD moves in whole points and its value per point is whatever contract size your broker chose for 1.0 lot — commonly $1 per point, but $0.10 and $10 exist side by side across brokers for the same US30. Two consequences: never copy a position size for indices from someone at another broker, and never assume a "100-point stop" risks the same dollars across two accounts. The calculator handles the common index contracts; the symbol specification settles arguments.
Pip difference: turning two prices into pips (and money)
pip difference = (price A − price B) ÷ pip size
- EURUSD 1.08500 → 1.08850: 0.00350 ÷ 0.0001 = 35 pips → 35 × $10 = $350 per standard lot.
- USDJPY 150.00 → 150.75: 0.75 ÷ 0.01 = 75 pips → 75 × $6.67 ≈ $500 per lot.
- Gold 2,315.00 → 2,319.50: 4.50 ÷ 0.10 = 45 pips → $450 per lot.
On 5-digit brokers the fifth decimal is a point (a tenth of a pip) — a move from 1.08500 to 1.08505 is half a pip, not five.
Why this matters more than it looks
Pip value is the middle term of every risk calculation: risk = stop distance (pips) × pip value × lots. Get it wrong on gold or an index and a "1% risk" trade can quietly be a 10% trade. Position sizing from the stop distance is covered in the lot size guide, drawdown budgeting for funded accounts in prop-firm drawdown rules — and if you want the arithmetic done for you on every trade, that is exactly what the free lot size and pip value calculators are for.
Frequently asked questions
What is the formula for pip value?＋
Pip value = pip size × contract size × lots, converted into your account currency. For a USD account trading EURUSD: 0.0001 × 100,000 × 1 lot = $10 per pip. For pairs not quoted in your account currency, divide by the quote-currency rate — e.g. USDJPY at 150.00: 0.01 × 100,000 ÷ 150 ≈ $6.67 per pip per standard lot.
How much is one pip worth on gold (XAUUSD)?＋
With the common convention that one gold pip is a 0.10 move and a standard lot is 100 oz, one pip is worth $10 per lot. Many brokers instead count 0.01 moves ('points'), which makes each $1. Always check your broker's tick size and tick value in the symbol specification — gold conventions differ more than any forex pair.
How do I calculate pip value for indices like US30 or NAS100?＋
Indices are quoted in points, not pips. Point value = your broker's contract size per 1.0 lot — on many CFD brokers that is $1 per point per lot (so US30 moving 100 points on 1 lot = $100), but $0.10 and $10 contracts also exist. There is no universal answer: read the symbol specification or use a calculator fed with your broker's contract size.
What is a pip difference and how is it counted?＋
The distance between two prices expressed in pips: (price A − price B) ÷ pip size. EURUSD from 1.08500 to 1.08850 is 0.00350 ÷ 0.0001 = 35 pips. On USDJPY, 150.00 to 150.75 is 0.75 ÷ 0.01 = 75 pips. Multiply the pip difference by pip value to turn any move into money.
Why does my JPY pair pip value keep changing?＋
Because the value is calculated in yen (0.01 × 100,000 = ¥1,000 per pip per lot) and then converted to your account currency at the current USDJPY rate. As the rate moves, the converted value moves with it — at 140 a pip is $7.14, at 155 it is $6.45.
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