- How Do Profit and Loss Work in Trading?
- Why Use a Trading Profit Calculator?
- How Does Our Profit Calculator Work?
- How to Calculate Profit in Forex Trading?
- How to Use a Crypto Trading Profit Calculator?
- Other Trading Calculators to Improve Your Strategy
- How to Calculate Profit from 20 PIPs in Forex?
Before placing a trade, it's crucial to define your risk level and set a realistic profit target. Knowing your potential gains or losses in advance allows you to plan trades effectively, manage risk properly, and optimise your trading strategy.
Want to calculate potential profits or losses instantly? Our free Profit Calculator helps you estimate outcomes across forex, stocks, and cryptocurrencies—ensuring you make informed trading decisions.
How Do Profit and Loss Work in Trading?
In trading, profit is the difference between the entry and exit price of a trade. Your gain or loss depends on whether you bought or sold the asset and how its price moved.
For a Buy (Long) Position:
- Profit = Selling Price – Buying Price
- Loss = Buying Price – Selling Price
For a Sell (Short) Position:
- Profit = Buying Price – Selling Price
- Loss = Selling Price – Buying Price
For example
If you buy EUR/USD at 1.1100 and later sell at 1.1150, you gain 50 PIPs.
If you short EUR/USD at 1.1100 and later buy back at 1.1150, you lose 50 PIPs.
Your total profit or loss depends on your trade size (lot size) and leverage.
Why Use a Trading Profit Calculator?
While most trading platforms show your profit or loss after a trade closes, a profit calculator allows you to estimate potential outcomes before entering a trade.
Benefits of a Profit Calculator:
- Plan trades more effectively by knowing potential gains or losses in advance
- Improve risk management by adjusting strategies based on expected returns
- Compare different trading scenarios before making decisions
- Especially useful for forex and crypto traders, where market volatility can quickly impact profits
How Does Our Profit Calculator Work?
Our Trading Profit & Loss Calculator helps estimate how much you can gain or lose based on your trade details.
To Use the Profit Calculator, Enter the Following Details:
- Trading Instrument – Choose forex pair, stock, commodity, or cryptocurrency
- Deposit Currency – Select your account currency (€EUR, £GBP, $USD, etc.)
- Trade Direction – Buy (long) or Sell (short)
- Lot Size or Investment Amount – Standard, mini, or micro lots
- Opening Price – The price at which the position was opened
- Closing Price – The price at which the position was closed (or stop-loss/take-profit level)
How to Calculate Profit in Forex Trading?
In forex trading, profit depends on:
- Currency pair traded (e.g., EUR/USD, GBP/USD, EUR/GBP, etc.)
- Trade size (standard, mini, or micro lot)
- Opening and closing price
- Trade direction (Buy/Sell)
Profit Calculation Formula:
Profit = (Lot size × Opening price) − (Lot size × Closing price)
For example
You buy 1 standard lot (100,000 units) of EUR/USD at 1.2000 and later sell at 1.2050, gaining 50 PIPs.
Profit Calculation:
(0.0001 × 100,000) × 50 = €500 profit
If you trade with leverage, your capital invested is lower, but the profit/loss is amplified.
Always check if your potential reward justifies the risk before entering a trade.
How to Use a Crypto Trading Profit Calculator?
A crypto profit calculator helps traders estimate potential gains and losses when buying or selling Bitcoin (BTC), Ethereum (ETH), and other cryptocurrencies.
For example
You buy 1 Bitcoin (BTC) at €35,000 and later sell at €36,500.
Profit Calculation:
€36,500 – €35,000 = €1,500 profit
If you use 5x leverage, your profit would be:
€1,500 × 5 = €7,500
A crypto profit calculator allows you to test different price scenarios before trading, helping you make well-informed decisions.
Other Trading Calculators to Improve Your Strategy
Lot Size Calculator
A lot size calculator helps determine the optimal position size based on your account balance and risk tolerance.
- Controls risk per trade
- Prevents overleveraging
- Ensures consistent money management
Position Size Calculator
A position size calculator determines how much capital to allocate to a trade based on your risk management rules.
For example
You have a €10,000 trading account and want to risk 2% per trade.
Risk per trade: €10,000 × 0.02 = €200
Lot size should be adjusted accordingly to stay within this risk limit.
Using a profit calculator alongside a position size calculator ensures that your trades are both profitable and risk-controlled.
How to Calculate Profit from 20 PIPs in Forex?
Your profit from 20 PIPs depends on:
- Currency Pair – Different pairs have different PIP values
- Lot Size – The more units you trade, the higher your profit per PIP
- Account Currency – If your account is in EUR but you trade GBP/USD, profits may need to be converted
Profit Calculation Formula:
Profit = PIP Value × Number of PIPs
PIP Value by Lot Size (EUR/USD & Major Pairs)
| Lot Size | Units of Base Currency | PIP Value (€) | Profit for 20 PIPs (€) |
|---|---|---|---|
| Standard Lot | 100,000 | €10 per PIP | €200 |
| Mini Lot | 10,000 | €1 per PIP | €20 |
| Micro Lot | 1,000 | €0.10 per PIP | €2 |
Example 1: Trading EUR/USD with a Standard Lot
You buy EUR/USD at 1.1000 and sell at 1.1020 (20 PIP movement).
Profit Calculation:
20 PIPs × €10 per PIP = €200 profit
Example 2: Trading GBP/USD with a Mini Lot
You sell GBP/USD at 1.2450 and buy back at 1.2430 (20 PIP movement).
Profit Calculation:
20 PIPs × €1 per PIP = €20 profit
Expert advice
Different currency pairs may have different PIP values—use our PIP Calculator to check exact values.
Whether you're trading forex, stocks, or cryptocurrencies, understanding how much you stand to gain or lose per trade is essential for long-term success.
- Always calculate your potential profit and loss before placing a trade
- Use a profit calculator to refine your trading strategy
- Combine it with a position size calculator to ensure proper risk management
Get started today! Try our free Trading Profit Calculator and take control of your trades.
