Forex Profit Calculator
Calculating profit and loss before entering a forex trade helps you understand potential risk and reward and plan your money management strategy accordingly. Your profit or loss on a forex trade depends on the entry and exit prices, the size of your position (lot size), and the number of lots traded. This calculator computes the raw P&L in the quote currency and converts it to a USD equivalent using the exchange rate you provide. It supports both long (buy) and short (sell) positions and covers standard, mini, and micro lots. Enter your trade details to see the potential profit or loss before broker costs such as spreads and commissions.
Forex profit formula
Long P&L = (Exit - Entry) x Lot Size x Lots / Exit Rate
Short P&L = (Entry - Exit) x Lot Size x Lots / Exit Rate
Pips = (Exit - Entry) / 0.0001 (standard pairs)
Units = Lot Size x Lots
When the quote currency is USD (e.g., EUR/USD), no conversion is needed and the result is already in USD. Divide by the exit rate to convert from non-USD quote currencies.
Forex risk management basics
- Most professional traders risk 1-2% of account equity per trade.
- Position size should be calculated from your stop-loss distance and risk tolerance.
- Leverage amplifies both gains and losses: always calculate max loss before entering.
- Spreads reduce profit on every trade; high-frequency strategies are most affected.
- Overnight swap (rollover) rates also add to or reduce profit on positions held past settlement.
Forex profit: frequently asked questions
How is forex profit calculated?
Profit = (Exit Price - Entry Price) x Lot Size x Number of Lots, for a long position. For a short position, the formula is reversed: (Entry Price - Exit Price) x Lot Size x Lots. The result is in the quote currency, which you then convert to your account currency.
What is leverage and how does it affect profit?
Leverage allows you to control a large position with a small deposit (margin). If you use 100:1 leverage on a $100,000 standard lot, your margin requirement is $1,000. Both profits and losses are magnified: a 1% move in your favour on a $100,000 position earns $1,000, which is a 100% return on your $1,000 margin deposit.
What is slippage in forex trading?
Slippage is the difference between the expected execution price and the actual fill price. It occurs during fast markets, news releases, or periods of low liquidity. Slippage increases your effective cost and reduces profit. This calculator assumes exact execution at your specified prices.
Does the calculator include spreads or commissions?
No. The calculator shows the raw price-move profit before broker costs. In practice, the spread (difference between bid and ask) and any per-trade commission reduce your net profit. Subtract these costs from the calculated profit to get your actual net gain.
How does a long vs. short position affect profit?
A long position profits when the price rises. A short position profits when the price falls. Selecting the position type in this calculator automatically adjusts the profit formula, so you always see the correct result regardless of trade direction.
Official sources
- CFTC: Foreign Currency Trading (Forex).
- NFA: Forex Basics - NFA.
Reviewed by the CalculatorHub team, edited by James Graham, 14 June 2026. See our methodology.