Calculate profit, loss and break-even price for call and put options. Works for both buying and selling options.
Options give a trader the right — but not the obligation — to buy or sell a stock at a set strike price by a set expiration date. That flexibility comes with a payoff structure that is anything but linear, which is why so many new options traders are surprised by their results. Buying a call or put has a fixed, limited cost (the premium) but can deliver outsized returns; selling options flips that around, collecting premium up front while taking on much larger, sometimes unlimited, risk. This calculator maps out the profit, loss, and break-even for all four basic positions so you know the shape of the trade before you place it.
The mechanics hinge on a few key numbers. Each standard US contract controls 100 shares, so a quoted premium of $5.50 actually costs $550 per contract. Your break-even is the strike adjusted by that premium — a long call needs the stock above strike plus premium just to start profiting, while a long put needs it below strike minus premium. The calculator computes the intrinsic value at your chosen stock price and turns it into dollar P&L and return on investment, making the asymmetry of each strategy concrete.
One crucial caveat: this tool shows intrinsic value at expiration. Before expiry, an option's market price also reflects time value, which erodes as expiration approaches (theta) and shifts with changes in implied volatility (vega) and the stock's movement (delta). The figures here are the floor of what an option is worth at expiry — perfect for understanding the payoff structure and break-evens, but not a live mid-trade valuation.
Long Call: Profit when stock rises above strike + premium. Max loss = premium paid.
Long Put: Profit when stock falls below strike − premium. Max loss = premium paid.
Short Call: Profit when stock stays below strike. Max profit = premium received. Unlimited risk above breakeven.
Short Put: Profit when stock stays above strike. Max profit = premium received. Risk = strike − premium.
Note: This calculator shows intrinsic value (expiry P&L). Actual mid-trade value also includes time value (theta).
Each standard US options contract controls 100 shares of the underlying stock. So a $5.50 premium actually costs $550 per contract ($5.50 × 100).
The stock price at expiration where your trade neither gains nor loses money. For a long call: Break-even = Strike + Premium. For a long put: Break-even = Strike − Premium.
No — this shows the intrinsic value P&L at expiration. Before expiry, your actual P&L will differ due to theta (time decay), vega (implied volatility), and delta (directional) effects.
When you buy an option, the most you can lose is the premium you paid — your downside is capped. When you sell (write) an option, you collect a limited premium but expose yourself to potentially large losses: a short call has theoretically unlimited risk if the stock keeps rising, and a short put loses heavily if the stock collapses. The calculator's max-loss figures make this asymmetry clear for each position.
For long options, the total premium is your maximum loss, so treat that dollar amount as your risk and keep it to a small fraction of your account — the same discipline used in the Position Size Calculator. For short options, size from the worst-case loss, not the premium collected, because the premium badly understates the real risk.
The value of running these numbers in advance is that it forces you to confront the break-even and the worst case before emotion enters the trade. A long call that looks cheap still needs the stock to clear strike plus premium just to break even — and to do so before expiration, while time decay works against you. Seeing that hurdle in dollars often reveals that a "cheap" option actually requires an unrealistic move to pay off.
Because options carry their own dimensions of risk beyond direction, pair this calculator with the broader risk tools on the site: the Position Size Calculator to cap how much premium you put at risk, the Risk/Reward Calculator to judge the payoff, and the Expectancy Calculator to confirm your options strategy has a positive edge across many trades. Options reward traders who understand the full payoff picture — not just the direction they hope the stock will move.