Pip Value Calculator (GBP)

How position size scales pip value

Pick the pair you trade, enter the size in standard lots, and choose your account currency. I find this calculator easiest to use with an actual lot size. The calculator returns the value of one pip and one point at that size. Smaller sizes scale in a straight line: a mini lot is 0.10 and a micro lot is 0.01, so a US$10.00 pip becomes US$1.00 and US$0.10.

The GBP default matters. Most calculators in search results assume a US dollar account, and the gap between a US$10.00 pip and its sterling equivalent is the whole GBP/USD exchange rate. I set the default to GBP because your account is likely sterling. Every figure on this page converts at the dated rate shown in the results panel, refreshed at each build.

How pip value is calculated

Pip value = pip size x contract size x lots x quote-to-account exchange rate. Pip size is 0.0001 on most pairs and 0.01 on JPY-quoted pairs. Contract size is 100,000 units of the base currency per standard lot. I think it helps to understand this formula; a platform may display it differently. The raw result lands in the pair's quote currency, then converts to the account currency.

For a UK trader the useful special case is EUR/GBP: the pair is quoted in sterling, so one pip on a standard lot is £10.00 with no conversion step at all. Dollar-quoted pairs (GBP/USD, EUR/USD) produce a US$10.00 pip that converts at the GBP/USD rate. I consider EUR/GBP the cleanest pair to model. Our own UK spread captures completed with the August 2026 measured programme. Our currency pairs guide covers the quoting conventions.

Because the sum lands in the quote currency, the quote currency alone sets the pip value: the base currency never enters it. That is why all 13 pairs this calculator supports reduce to five figures in a GBP account, one per quote currency.

Yen-quoted pairs look cheap per pip only because the pip is a different size; the JPY convention below explains it. I suggest you change the account currency and watch the numbers adjust; every figure in the table moves with the rate, which is why the tool converts at the dated rate rather than storing a fixed pip value.

Pip vs point: the 10x trap

One pip equals ten points on 5-decimal pricing, so mixing the two produces numbers wrong by a factor of ten. Confirm which unit your platform is quoting. A point is the smallest increment a platform displays; a pip is the unit spreads and moves are quoted in. A spread quoted as "6 points" is 0.6 pips.

This site's calculators only ever work in pips. I set this rule to keep comparisons consistent. If a number elsewhere looks ten times too small or too large, check the unit before acting on it.

JPY pairs and the 0.01 pip

Yen-quoted pairs (USD/JPY, GBP/JPY, EUR/JPY) price to two or three decimals, so the pip sits at the second decimal. The formula is unchanged, only the pip size differs. One pip on 1.00 lot of USD/JPY is 0.01 x 100,000 = 1,000 yen, which is £4.62 in a GBP account at current rates (2 September 2026).

On 3-decimal JPY pricing the third decimal is the point, and the same 10x relationship applies. The calculator labels the pip size it used, so a JPY result is never silently mixed up with a 4-decimal pair.

Where pip value fits in your trading costs

A 1.0-pip spread on one standard lot of GBP/USD costs £7.40 in a GBP account every time you open and close the position, because a spread quoted in pips is charged at exactly one pip value. Multiply by monthly volume and small per-pip differences turn into real money, which is why our lowest spread forex brokers comparison helps you find brokers with low spreads across major pairs. Our broker cost calculator lets you compare costs across brokers and see the monthly total.