# PIP calculation
**URL:** https://community.deriv.com/t/pip-calculation/28954
**Category:** Trading Platforms
**Tags:** mt5, pip
**Created:** [April 14, 2022, 7:41am UTC](https://community.deriv.com/t/pip-calculation/28954 "2022-04-14T07:41:46Z")
**Posts on this page:** 2
**Page:** 1
### Author:  [@Margaret\_deriv](https://community.deriv.com/u/Margaret_deriv)
#### Post date: [April 14, 2022, 7:41am UTC](https://community.deriv.com/t/pip-calculation/28954/1 "2022-04-14T07:41:46Z")
Dear members,
PIP refers to “Percentage in Point”. It will be determined by the digits in the MT5 market details and description. A pip calculator calculates the value of a pip in monetary terms, helping you estimate potential profit or loss based on trade size.
**Formula:**
**Pip value USD:** Pip Size\* x Lots x Contract Size x QTE/USD\*
\*QTE/USD is the conversion rate from the quote currency (QTE), referred to as the “Profit Currency” in MT5, to USD.
**Example:**
You are trading 0.25 lots of EUR/GBP, with a GBP to USD conversion rate of 1.31386.
The calculation would be:
This means that for every pip movement of EUR/GBP, your profit or loss (PnL) will change by 3.28 USD.
_Note: These values are approximate and may vary based on the leverage set for your account and the specific asset being traded._
Hope the information above is insightful for you and happy trading with us 😄
If you have any questions, please visit our Help Centre or contact us via Live Chat and WhatsApp.
> **[Help Centre | Frequently Asked Questions | Deriv](https://deriv.com/help-centre)**
>
> Have questions on your trading account, how our trading platforms work or about trading? Read our FAQ’s or contact us through Deriv live chat.
---
### Author:  [@Deriv\_adminN1](https://community.deriv.com/u/Deriv_adminN1)
#### Post date: [April 16, 2022, 5:35am UTC](https://community.deriv.com/t/pip-calculation/28954/2 "2022-04-16T05:35:01Z")