About the Forex P&L Calculator
What is the Forex P&L Calculator?
This calculator works out forex profit or loss on a currency trade. The result is first in the quote currency (the second currency in the pair) and is then converted into rupees.
For INR pairs such as USD-INR on NSE or BSE, the quote currency is already the rupee. For cross pairs such as EUR-USD, enter the rupee value of one US dollar.
How to use the Forex P&L Calculator
- Trade (sample: Buy (long))
- Entry Price (sample: 87.5)
- Exit Price (sample: 87.95)
- Quantity in Base Currency Units (sample: 10,000)
- Pip / Tick Size (sample: 0.0025 – INR pairs on NSE/BSE)
- ₹ Value of 1 Unit of the Quote Currency (1 for INR pairs) (sample: 1)
- Brokerage, Fees & Taxes (₹) (sample: 150)
- Press Calculate Forex Profit / Loss (results also refresh as you type). The result card shows the Profit / Loss in ₹, along with Gross P&L in the quote currency, Price move in pips / ticks, Value of one pip in ₹ and Return on notional value.
Formula used
P&L = (Exit − Entry) × Quantity × Direction × Quote-currency value in ₹ − Costs
- Direction = +1 for a buy (long), −1 for a sell (short)
- Pips = price move ÷ pip size
One NSE USD-INR futures contract is USD 1,000, with a tick size of ₹0.0025.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Trade | Buy (long) |
| Entry Price | 87.5 |
| Exit Price | 87.95 |
| Quantity in Base Currency Units | 10,000 |
| Pip / Tick Size | 0.0025 – INR pairs on NSE/BSE |
| ₹ Value of 1 Unit of the Quote Currency (1 for INR pairs) | 1 |
| Brokerage, Fees & Taxes (₹) | 150 |
| Result | Value |
|---|---|
| Profit / Loss in ₹ | ₹4,350 |
| Gross P&L in the quote currency | 4,500 |
| Price move in pips / ticks | 180 |
| Value of one pip in ₹ | ₹25 |
| Return on notional value | 0.514% |
| Legal note | Residents may trade forex only in INR pairs and permitted cross pairs on recognised Indian exchanges |
Tips for using the Forex P&L Calculator
- Residents in India may trade only permitted currency pairs on recognised Indian exchanges; overseas forex apps are illegal and appear on RBI's Alert List.
- Profits from currency derivatives are generally taxed as non-speculative business income.
- Set a stop-loss based on the pip value so that one trade cannot do serious damage.