- What is Profit in Trading?
- Why Use a Profit Calculator?
- How Does a Profit Calculator Work?
- How to Use a Forex Trading Profit Calculator
- How to Use a Crypto Trading Profit Calculator
- Other Trading Calculators You Should Know About
- How to Calculate Profit from 20 Pips
Before placing a trade, it's important to define your risk level and set a realistic profit target. Understanding your potential gains or losses in advance helps you plan your trades effectively and manage risk properly.
Our Profit Calculator allows you to quickly estimate potential profits or losses based on your trade details. Whether you’re trading forex, stocks, or cryptocurrency, this tool helps you make informed decisions and refine your trading strategy.
What is Profit 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 changed over time.
How Profit and Loss Work
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
You buy USD/PHP at 56.00 and later sell at 56.50 → You made 50 pips of profit. You short USD/PHP at 56.00 and later buy back at 56.50 → You lost 50 pips.
Your total profit or loss depends on your trade size (lot size) and leverage.
Why Use a Profit Calculator?
Most trading platforms automatically display your profit or loss when a position is closed, but a profit calculator helps you estimate potential outcomes before entering a trade.
Using a profit calculator allows you to:
- Plan trades more effectively by knowing potential profits or losses in advance.
- Adjust your risk management strategy based on expected returns.
- Compare different trading scenarios before making a decision.
This tool is especially useful for forex and crypto traders, where market volatility can quickly impact profits.
How Does a Profit Calculator Work?
Our Profit and Loss Calculator determines how much you can gain or lose based on the opening and closing prices of your trade.
To use the calculator, enter the following details:
- Trading instrument – Forex pair, stock, commodity, or cryptocurrency
- Deposit currency – The currency of your trading account (PHP, USD, EUR, etc.)
- Trade direction – Buy (long) or Sell (short)
- Lot size or investment amount – Position size (e.g., standard, mini, or micro lots)
- Opening price – The price at which the position was opened
- Closing price – The price at which the position is closed (or stop-loss/take-profit level)
Profit Calculation Formula
Profit = (Lot size × Opening price) − (Lot size × Closing price)
Real trading profits may also be affected by:
- Broker commissions
- Swap fees (overnight charges for holding trades)
- Spreads (the difference between the bid and ask price)
Good to know
You can check out our Brokerage Fees Calculator to estimate your trading costs in advance and choose the most cost-effective broker.
How to Use a Forex Trading Profit Calculator
For forex traders, a profit calculator helps determine how much you can earn or lose based on exchange rate movements.
Key Inputs for Forex Profit Calculation
- Currency pair (e.g., USD/PHP, EUR/USD)
- Account currency (PHP, USD, EUR, etc.)
- Trade size (standard lot, mini lot, or micro lot)
- Opening and closing price
- Trade direction (Buy/Sell)
For example
You buy 1 standard lot (100,000 units) of USD/PHP at 56.000 and later sell at 56.500, gaining 50 pips.
(0.01 × 100,000) × 50 = ₱50,000 profit
If you trade with leverage, your capital invested is lower, but the profit/loss is amplified. Before placing a trade, always check if your potential reward justifies the risk.
How to Use a Crypto Trading Profit Calculator
A crypto profit calculator helps traders estimate potential gains and losses when buying or selling Bitcoin, Ethereum, or other cryptocurrencies.
For example
You buy 1 Bitcoin (BTC) at ₱2,000,000 and later sell at ₱2,100,000.
Profit = 2,100,000 − 2,000,000 = ₱100,000
If you use 5x leverage, your profit would be:
100,000 × 5 = ₱500,000
A crypto profit calculator allows you to test different price scenarios before trading, ensuring you make well-informed decisions.
Other Trading Calculators You Should Know About
Lot Size Calculator
A lot size calculator helps determine the optimal position size based on your account balance and risk tolerance.
How it helps:
- 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 ₱500,000 trading account and want to risk 2% per trade.
- Your risk per trade = 500,000 × 0.02 = ₱10,000.
- Your lot size should be adjusted accordingly to stay within this risk limit.
By using a profit calculator alongside a position size calculator, you can ensure that your trades are both profitable and risk-controlled.
How to Calculate Profit from 20 Pips
The profit from 20 pips depends on three key factors:
- Currency Pair – Different currency pairs have different pip values.
- Lot Size – The number of units you trade affects how much each pip is worth.
- Account Currency – If your account is in PHP, but you're trading a pair like EUR/USD, you may need to convert profits.
Profit Calculation Formula
Profit = Pip Value × Number of Pips
Pip Value by Lot Size (For USD/PHP & Major Pairs)
| Lot Size | Units of Base Currency | Pip Value (USD/PHP, EUR/USD, etc.) | Profit for 20 Pips |
|---|---|---|---|
| Standard Lot | 100,000 units | ₱500 per pip | ₱10,000 |
| Mini Lot | 10,000 units | ₱50 per pip | ₱1,000 |
| Micro Lot | 1,000 units | ₱5 per pip | ₱200 |
Example Scenarios
Scenario 1: Trading USD/PHP with a Standard Lot (100,000 units)
You buy USD/PHP at 56.000 and sell at 56.020 (a 20-pip movement).
Profit = 20 pips × ₱500 per pip = ₱10,000.
Scenario 2: Trading USD/PHP with a Mini Lot (10,000 units)
You sell USD/PHP at 56.500 and buy back at 56.480.
Profit = 20 pips × ₱50 per pip = ₱1,000.
Scenario 3: Trading EUR/PHP (Pip Value Varies)
For EUR/PHP, the pip value isn’t always ₱500 for a standard lot, as the pip value depends on the exchange rate.
To find the exact pip value, check your broker’s platform or use a pip calculator.
Expert advice
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, and combine it with a position size calculator to ensure proper risk management.
To get started, try our free Trading Profit Calculator today and take control of your trades.
