Options Profit Calculator
Calculate options profit, loss, and break-even for calls and puts. See a payoff diagram with max profit and max loss at expiration.
For informational purposes only. Not financial advice. Calculations are estimates and may not reflect your exact situation. Consult a qualified financial adviser for personalised guidance.
About Options Profit Calculator
See the profit and loss profile of a call or put option before you enter the trade. Enter the strike price, premium, and number of contracts, and the calculator shows you the break-even price, maximum profit, maximum loss, and a payoff diagram.
Calls vs Puts
A long call gives you the right to buy shares at the strike price. You profit when the underlying rises above the break-even (strike plus premium). A long put gives you the right to sell at the strike price, profiting when the underlying falls below the break-even (strike minus premium). Toggle between the two to compare.
Reading the Payoff Diagram
The chart shows your total profit or loss at different underlying prices at expiration. The flat portion below zero represents the premium you paid. The sloped line shows where profits begin. The blue dashed line marks break-even. This visual makes it easy to see the trade's risk profile at a glance. For stock trades without options, the Stock Profit Calculator handles direct buy/sell calculations.
Keep It Simple
This calculator focuses on the basic payoff at expiration. It does not model Greeks, time decay, or implied volatility. That keeps things straightforward for evaluating whether a trade's risk-reward makes sense before diving into more complex analysis. For evaluating your risk-to-reward ratio on directional trades, the Risk/Reward Calculator is a useful companion. All calculations run locally in your browser.
Frequently Asked Questions
How is the break-even price calculated for options?
For a call option, break-even equals the strike price plus the premium paid. For a put option, break-even equals the strike price minus the premium. The underlying asset needs to reach the break-even price at expiration for you to avoid a loss.
What is the maximum loss on a long option?
The maximum loss on a long call or long put is the total premium paid. If the option expires worthless, you lose the premium and nothing more. This is one advantage of buying options over trading the underlying directly.
What is the maximum profit on a long call?
Technically unlimited, since the underlying asset's price can rise indefinitely. In practice, the profit is (underlying price minus strike minus premium) times 100 shares per contract.
What does the payoff diagram show?
The payoff diagram plots your profit or loss at different underlying prices at expiration. The horizontal dashed line is break-even. The curve shows where you profit (above the zero line) and where you lose (below). The blue vertical line marks the break-even price.
Does this account for time decay or implied volatility?
No. This calculator shows the payoff at expiration only. Time decay (theta) and implied volatility (vega) affect the option price before expiration but are not modeled here. This keeps the calculator simple and focused on the basic risk-reward profile.