Profit & Loss (P&L) Calculator
Category: Trading CalculatorsCalculate your potential profits or losses for different trading scenarios
Profit & Loss Results
P&L Breakdown
Price Change Impact
Trade Details
About Profit & Loss Calculation
Understanding how to calculate potential profits and losses is essential for effective risk management in trading. This calculator helps you estimate P&L for different scenarios before entering a trade.
Long vs Short Positions
In a long position (buy), you profit when prices rise. In a short position (sell), you profit when prices fall.
Pip Value
A pip is the smallest price movement in forex. The value of a pip varies depending on the currency pair and position size.
Leverage
Leverage allows you to control a larger position with a smaller amount of capital, but it also magnifies both profits and losses.
Trading Costs
Remember to factor in commissions, spreads, and overnight fees when calculating your total P&L.
Tips for Using the Calculator
- Use this calculator to plan trades and set realistic profit targets.
- Always calculate your potential loss before entering a trade to ensure it aligns with your risk management strategy.
- Include all applicable fees to get a more accurate estimate of your net profit or loss.
- Test different scenarios with various exit prices to understand possible outcomes.
What this calculates
The realised gain or loss on a position, after costs.
- Formula
P&L = (exit − entry) × position size × pip value, minus spread and commission- Worked example
- Buying 50,000 EUR/USD at 1.0850 and exiting at 1.0890 is 40 pips × 5 USD per pip = 200 USD, less costs.
- When to use it
- After closing, and before entering as a projection of the outcome.
- Common mistake
- Quoting P&L before costs. Spread, commission and swap can turn a marginal winner into a loser, especially on short holds.