How it works
Profit or loss on a currency trade comes from the change in price multiplied by the size of the position. The direction matters: a buy (long) profits when the price rises, while a sell (short) profits when the price falls.
The calculator works out the gross result in the quote currency, converts it into your account currency, and then subtracts trading costs to give a net figure.
Formula
Gross P/L in the quote currency:
- Buy: (exit − entry) × units
- Sell: (entry − exit) × units
Conversion to account currency:
- Account currency = quote currency: no change
- Account currency = base currency: divide by the exit price
- Otherwise: multiply by the quote → account rate
Net P/L = gross P/L − spread cost − commission
A positive number is a profit; a negative number is a loss.
Worked examples
All prices are illustrative.
Example 1: Buying EUR/USD
- Direction: buy
- Entry: 1.0850, exit: 1.0910
- Size: 50,000 units (0.50 lots)
- Account: USD
- Spread: 1.2 pips; commission: $5 total
Gross = (1.0910 − 1.0850) × 50,000 = 0.0060 × 50,000 = $300
Spread cost = 1.2 × 0.0001 × 50,000 = $6
Net = 300 − 6 − 5 = $289
Example 2: Selling USD/JPY
- Direction: sell
- Entry: 150.00, exit: 149.20
- Size: 20,000 units
- Account: USD
Gross in JPY = (150.00 − 149.20) × 20,000 = 0.80 × 20,000 = 16,000 JPY
USD is the base currency, so divide by the exit price: 16,000 ÷ 149.20 = $107.24 (rounded)
Example 3: A losing buy
You buy 10,000 units of EUR/USD at 1.0850 and exit at 1.0820 with a USD account.
Gross = (1.0820 − 1.0850) × 10,000 = −0.0030 × 10,000 = −$30
Any spread or commission makes the net loss larger than $30.
Tips
- Always look at net P/L. Frequent short-term trading can turn a small gross edge into a net loss once costs are included. See What is spread?.
- Plan both outcomes. Run the calculator once with your take-profit and once with your stop-loss as the exit to see the full range.
- Remember swap. Positions held overnight may earn or pay swap, which this tool does not include.
- Track results over time in the Trading Journal rather than judging a strategy by single trades.
- Cross-check pip value with the Pip Calculator if a result looks unexpected.
Risk note
The calculator shows what a price move means in money terms; it does not predict where prices will go. Leverage magnifies both gains and losses, and you can lose more than you expect if prices gap or slippage occurs. Use the results for education and planning only.
Frequently asked questions
Why is my P/L first calculated in the quote currency?
Price differences are measured in the quote currency. A move on EUR/USD is in dollars, a move on USD/JPY is in yen, so the result is converted into your account currency afterwards.
How is spread cost calculated?
Spread cost = spread in pips × pip size × units, converted to your account currency. It represents the difference between the buying and selling price you pay to enter and exit.
Does the calculator include overnight swap?
No. Swap or rollover charges depend on your broker and the interest rate differential between the two currencies. Add them separately if you held the trade overnight.
Can I use it to plan a trade before entering?
Yes. Enter your planned stop-loss or take-profit as the exit price to see the potential loss or gain before you place the order.
Why does my broker show a slightly different number?
Brokers use live conversion rates, exact fills and their own commission schedules. Small rounding and timing differences are normal.
Guide last reviewed .