The short answer
To calculate profit and loss on gold, use this formula:
P&L (USD) = price change × lots × 100
The 100 is the standard contract size: on most platforms, 1.00 lot of XAUUSD is 100 ounces. So a $1 move is worth $1 on 0.01 lot, $10 on 0.10 lot and $100 on 1.00 lot. For a buy, the price change is close minus open; for a sell, it’s open minus close.
That’s the gross result. To get the net result, subtract commission and any overnight swap, and if your account isn’t in dollars, convert the total. Our free gold profit calculator does all of this, but it’s worth understanding the steps yourself.
Step 1: gross profit and loss on gold
| Direction | Formula |
|---|---|
| Buy (long) | (Close − Open) × lots × 100 |
| Sell (short) | (Open − Close) × lots × 100 |
A positive answer is a profit; a negative one is a loss.
Value of a move at different sizes
| Gold moves | 0.01 lot (1 oz) | 0.10 lot (10 oz) | 1.00 lot (100 oz) |
|---|---|---|---|
| $1 | $1 | $10 | $100 |
| $5 | $5 | $50 | $500 |
| $10 | $10 | $100 | $1,000 |
| $25 | $25 | $250 | $2,500 |
| $50 | $50 | $500 | $5,000 |
Gold’s 20-day average daily range was about $75 in late October 2026, according to our volatility tool. So on 1.00 lot, a single average day spans roughly $7,500 of potential profit or loss. That’s why lot size matters so much.
Pip conventions on gold vary, so we work in dollars of gold price. If your platform says “250 pips”, check whether a pip is $0.10 or $0.01. Our XAUUSD pip value guide explains the different definitions, and the gold pip calculator converts between them.
Step 2: the costs
The figures below are hypothetical and chosen for easy maths. Your own costs depend on your account type and platform.
- Spread: $0.30 per ounce, so $30 per 1.00 lot.
- Commission: $7 per 1.00 lot, round trip.
- Swap: −$40 per 1.00 lot per night for a long position.
How each cost works
Spread. You buy at the ask and sell at the bid. If you calculate P&L from your actual fill prices, the spread is already included. If you plan from a chart that shows the bid price, add the spread separately.
Commission. Charged per lot, often at opening and closing. It’s a fixed cost per lot, regardless of whether the trade wins.
Swap (rollover). A financing charge (or occasionally a credit) for positions held past the daily rollover, usually at 5:00 pm New York time. Many platforms charge three nights on one weekday to cover the weekend. Our gold swap calculator works out the cost for any size and holding period, and our guide to spreads, commissions and swaps explains how to find your real rates.
Step 3: worked examples
Example A: a winning long held two nights
You buy at $4,000.00 (chart price) and close at $4,025.00, holding for two nights.
| Item | 0.01 lot | 0.10 lot | 1.00 lot |
|---|---|---|---|
| Gross ($25 × lots × 100) | +$25.00 | +$250.00 | +$2,500.00 |
| Spread ($0.30 × lots × 100) | −$0.30 | −$3.00 | −$30.00 |
| Commission ($7 per lot) | −$0.07 | −$0.70 | −$7.00 |
| Swap (2 nights × $40 per lot) | −$0.80 | −$8.00 | −$80.00 |
| Net P&L | +$23.83 | +$238.30 | +$2,383.00 |
Costs took about 5% of this winning trade. On a smaller move, the same costs would be a much bigger share.
Example B: a losing intraday short
You sell 0.10 lot at $4,010.00 and the price rises; you close at $4,025.00, the same day.
- Gross: (4,010 − 4,025) × 0.10 × 100 = −$150.00
- Spread: −$3.00
- Commission: −$0.70
- Swap: none (closed before the rollover)
- Net: −$153.70
Costs are always added to a loss; they never reduce it.
Example C: a winning short
You sell 0.05 lot at $4,010.00 and close at $3,980.00.
- Gross: (4,010 − 3,980) × 0.05 × 100 = +$150.00
- Spread: −$1.50; commission: −$0.35
- Net: +$148.15
Step 4: convert to your account currency
XAUUSD profit is calculated in US dollars. If your account is in another currency, your platform converts it, usually at its own rate. Using the European Central Bank reference rates for 23 October 2026 (EUR/USD 1.1193, EUR/GBP 0.83728, EUR/INR 106.272), the cross rates work out at about USD/INR 94.95 and GBP/USD 1.3368.
| Net P&L (USD) | INR (× 94.95) | EUR (÷ 1.1193) | GBP (÷ 1.3368) |
|---|---|---|---|
| +$23.83 | ≈ ₹2,263 | ≈ €21.29 | ≈ £17.83 |
| +$238.30 | ≈ ₹22,625 | ≈ €212.90 | ≈ £178.26 |
| −$153.70 | ≈ −₹14,593 | ≈ −€137.32 | ≈ −£114.97 |
Your platform’s conversion rate will differ slightly, and some charge a conversion margin. Exchange-rate moves also change the value of open profits in your currency.
For readers in India: trading XAUUSD on overseas leveraged platforms raises legal and regulatory issues. Read our guide to how to trade gold in India first.
Step 5: know your break-even distance
Before entering, work out how far gold must move in your favour just to cover costs. Using the hypothetical costs above:
| Holding period | Cost per ounce | Break-even move |
|---|---|---|
| Intraday | $0.30 spread + $0.07 commission | $0.37 |
| 1 night | + $0.40 swap | $0.77 |
| 3 nights (incl. weekend charge) | + $1.20 swap | $1.57 |
Per ounce, commission is $7 ÷ 100 = $0.07 and swap is $40 ÷ 100 = $0.40 a night. If your target on a scalp is $2, a $0.37 break-even is nearly a fifth of it. That’s why costs matter more on short timeframes.
Step 6: express it as risk, not just dollars
Dollar profit means little without your account size. Two useful habits:
- Percentage of account: a −$153.70 loss is about 7.7% of a $2,000 account, far above the 1–2% many risk plans allow.
- R-multiple: if you planned to risk $100 and made $238.30, that’s about +2.4R. Tracking results in R helps you judge a strategy. Our lesson on trading math and expectancy explains why.
Before any trade, decide the loss you can accept, then size with the position size calculator rather than picking a lot size first.
Leverage magnifies both profit and loss. A $50 move against 1.00 lot is a $5,000 loss before costs, and gaps or slippage can make it larger than your stop-loss distance suggests.
Common mistakes
- Using the wrong contract size. Most platforms use 100 oz per lot, but check the specification.
- Forgetting swap on trades held for days, especially over the weekend charge.
- Counting pips instead of dollars, then mixing up pip definitions.
- Ignoring currency conversion on a non-dollar account.
- Judging a trade by dollars alone instead of as a share of the account or in R.
Quick checklist
- [ ] Price change × lots × 100 for the gross result
- [ ] Spread, commission and swap subtracted
- [ ] Converted to my account currency
- [ ] Break-even distance known before entry
- [ ] Loss at the stop is an acceptable share of my account
For more on lot sizes and what one lot means in ounces and margin, read how much is 1 lot of gold.
Sources
- ECB: euro foreign exchange reference rates (daily XML, 23 Oct 2026)
- XAUUSD Global: gold volatility tool, data to 25 Oct 2026 (COMEX GC=F)
- Deltavalue: COMEX gold futures and options contract overview (100 troy ounces per contract)
Educational content only, not financial advice. Trading gold with leverage carries a high risk of loss.
Frequently asked questions
What is the formula for profit on XAUUSD?
For a buy: (closing price − opening price) × lots × 100. For a sell: (opening price − closing price) × lots × 100. The 100 is the usual contract size of 100 ounces per standard lot. Then subtract commission and swap to get the net result.
How much profit is $1 on 0.01 lot of gold?
A $1 move in gold is worth $1 on 0.01 lot, $10 on 0.10 lot and $100 on 1.00 lot, assuming the usual contract size of 100 ounces per lot. Check your platform’s contract specification, because some brokers use different sizes.
Is the spread included in my profit and loss?
Yes, if you use your actual fill prices. Buys fill at the ask and are closed at the bid, so the spread is already inside the two prices. When you plan a trade from a chart price, add the spread as a separate cost so you aren’t surprised.
How do I convert gold profit into rupees, euros or pounds?
XAUUSD profit is calculated in US dollars first. Multiply by USD/INR to get rupees, or divide by EUR/USD or GBP/USD to get euros or pounds. Most platforms with non-dollar accounts do this automatically at their own rate.
What is the break-even distance on a gold trade?
It is the price move needed to cover your costs: the spread plus the commission per ounce, plus any swap per ounce for nights held. For example, a $0.30 spread and $7 commission per lot need about $0.37 of movement in your favour before you are in profit.
Why is my gold profit different from the calculator?
Common reasons are slippage on entry or exit, a different contract size, swap charged overnight, commissions, or currency conversion at a different rate. Compare your platform’s trade history line by line with the calculation.