How to Use the Profit and Loss Calculator

Forecast Trade Outcomes Before You Enter

The Profit & Loss Calculator lets you preview potential gains or losses for any trade setup—before risking capital. Use it to validate risk/reward ratios and plan take-profit targets.

Inputs Required

Account Currency: USD, EUR, GBP, etc. Ensures results reflect real account value.
Currency Pair: Choose instrument you plan to trade.
Trade Size: In lots or units. Paste result directly from our Position Size or Lot Size calculators.
Entry Price: Planned order price.
Exit Price: Planned take profit or stop loss level.
Direction: Long (buy) or Short (sell).

Optional advanced fields: multiple targets, trailing stop simulation (if enabled in settings).

Example Calculation

Trade Idea: Long GBP/USD
Account: $8,000 (USD)
Risk: 1% (Position Size calculator recommends 0.20 lots)
Entry: 1.2500
Take Profit: 1.2600
Stop Loss: 1.2460

Step-by-Step

Enter account currency: USD
Pair: GBP/USD
Trade Size: 0.20 lots
Entry: 1.2500
Exit for profit: 1.2600
Direction: Long

Results

Pip Gain: +100 pips
Profit: +$200 (before swap/commission)
Risk/Reward: 2.5:1 (risk 40 pips = $80)
Break-even Price: 1.2508 (covers spread + commission)

What the Output Shows

Profit in Account Currency: Net gain/loss excluding fees.
Pip Difference: Movement between entry and exit.
Percentage Return: Profit relative to account balance.
Break-Even Price: Where trade costs are covered.
Swap Estimate: (If broker data available) overnight funding impact.
Commission Impact: Add broker commissions for ECN accounts.

Planning Risk/Reward Ratios

Minimum Recommended: 1.5:1 (target 1.5x your risk)
Ideal Range: 2:1 to 3:1 for swing trades
Scalp Trades: Often 1:1, but win rate must compensate

Use multiple exit fields to test different target levels and see how profit changes.

Tips for Accurate Calculations

Include spread in entry price for buy trades (enter actual fill price).
Account for commissions if using ECN brokers ($7 per lot round-turn typical).
For short trades, remember swap can be positive or negative—check broker table.
Recalculate if you adjust stop or target mid-trade.

Best Practices

Run calculation before entering every trade.
Document expected vs actual outcome in trading journal.
Combine with Position Size calculator to ensure $ risk matches plan.
For multi-target strategies, calculate each target separately.