Beginners starting to learn FX often struggle with understanding: “If I gain 100 Pips, how much money do I make?” and more like “How many Pips do I need to win to earn 10,000 yen?” — the Pips profit conversion part.

On social media and EA sales pages, expressions like “3,000 Pips per year” or “200 Pips per month” often appear, butit’s hard to visualize exactly how much profit that represents, right?

In this article, using the most familiarUSDJPY (Dollar/Yen) as an example, we’ll attempt to clearly explain “How much profit in yen do you earn if you win 100 Pips?”

■ Conclusion: Profit varies significantly by Lot size

The profit when you win 100 Pips is calculated with the following formula.

Profit (yen) = Value of 1 Pip × Number of Lots × 100 Pips (Pips won)

In USDJPY,

1 Pip = 0.01 yen (0.01 yen per pip)

In other words, it depends on the number of Lots.

However, although you often see “0.01 Lot” or “0.1 Lot,” in the above calculation those units are not used; you use “amount in base currency” (e.g., 10,000 units) for calculation.

■ It’s easier to grasp the value of 1 Pip by Lot size

In the case of USDJPY, you need the following formula:

Value of 1 Pip (yen) = Contract size × 0.01 yen

By keeping track of the “value of 1 Pip” according to your traded lot size with this formula, calculations become clearer.

For example, the following:

• 0.01 Lot = 1,000 units → 1 Pip = 10 yen

• 0.1 Lot = 10,000 units → 1 Pip = 100 yen

• 0.5 Lot = 50,000 units → 1 Pip = 500 yen

• 1.0 Lot = 100,000 units → 1 Pip = 1,000 yen

■ What if you gain 100 Pips?

● For 0.01 Lot (1,000 units)

1 Pip = 10 yen

● For 0.1 Lot (10,000 units)

1 Pip = 100 yen

● For 0.3 Lot (30,000 units)

1 Pip = 300 yen

100 Pips →Profit of 30,000 yen

● For 0.5 Lot (50,000 units)

100 Pips →Profit of 50,000 yen

100 Pips →Profit of 100,000 yen

As you can see,the larger the Lot, the larger the profit (and potentially loss) as well in FX.

■ Average daily price movement (volatility)

You might wonder, “roughly how many Pips move in a day?” Here’s a quick reference.

■ What target Pips should you aim for?

Common guidance is aiming for 100–300 Pips per month, and 1,000–3,000 Pips per year.

For example, if you could achieve “200 Pips per month” consistently:

• 0.1 Lot → 20,000 yen

• 0.3 Lot → 60,000 yen

• 0.5 Lot → 100,000 yen

• 1.0 Lot → 200,000 yen

If this continues for 12 months, it becomes a substantial income.

However, to hold that Lot size, you also need a corresponding amount of capital.

With 100,000 yen, a safe range would be around 0.03–0.1 Lot.

Thus, to hold larger Lots, you need proportionally larger funds.

The above is the traditional “simple interest” approach. For automated trading tools (EA), some offer compounding features that reinvest profits, allowing capital to grow exponentially over a span of years.

As a note, with 100,000 yen, safely operating 0.05 Lot and modestly gaining 100 Pips, that would be 5,000 yen. A 5% monthly profit would be 60% annually if sustained, which is an exceptionally impressive figure even with simple interest.

■ Summary

FX profits are determined by “Lot × Pips.”
And in USDJPY,

• 10,000 units (0.1 Lot) = 1 Pip = 100 yen

• Win 100 Pips → 10,000 yen

If you remember just this, profit calculations are simple.

First, start with a safe Lot size and gradually learn by earning Pips.

That’s about what I wanted to cover today.

See you again!