Option Breakeven Calculator
Calculate expiration breakeven and payoff limits for long calls, long puts, covered calls, and cash secured puts using a 100 share contract multiplier.
How it works
Choose a long call, long put, covered call, or cash secured put. Enter the strike and option premium per share. For a covered call, also enter the share purchase price used as the cost basis. Enter a positive whole number of contracts. The calculator assumes 100 shares per contract and shows expiration breakeven, maximum profit, and maximum loss.
Premium is the amount paid to buy an option or received to sell one, stated per share. Long calls and long puts pay premium. Covered calls and cash secured puts receive premium. For positions with a finite best outcome, the calculator reports a best case P&L when that value is a loss rather than calling it a profit.
A reachable breakeven is an underlying price of zero or higher where the modeled expiration P&L equals zero. Some combinations have no such price. For example, a long put premium greater than its strike remains loss making even if the underlying falls to zero. The result names that condition without displaying a negative stock price.
Compare a long call or put with the corresponding short position only after checking that the same strike, premium units, contract count, and expiration assumptions apply. This page evaluates one position at a time and does not combine option legs.
Step by step
- Choose a position and enter its per share prices.
- Enter the whole number of contracts. Each is modeled as 100 shares.
- Review the expiration breakeven and the best and worst modeled outcomes.
Worked examples
For a long call, enter a $100 strike, a $3 premium per share, and 2 contracts. Each contract represents 100 shares. At expiration the breakeven is $103, maximum loss is $600, and profit has no fixed upper limit.
For a covered call, enter a $95 stock cost basis, a $100 strike, a $2 call premium per share, and 1 contract. The breakeven is $93, maximum profit is $700, and maximum loss is $9,300 if the shares fall to zero. These results are before costs and taxes.
When to use this calculator
Use this calculator to check the expiration breakeven and payoff limits of one long call, long put, covered call, or cash secured put position.
Use the result as a price scenario. Review contract terms, costs, and events excluded from this model before drawing conclusions about an actual position.
Common input mistakes
Enter option premiums per share, not the total contract debit or credit. The calculator applies the 100 share multiplier and contract count itself. For a covered call, enter the share purchase price as cost basis, not the call strike.
Check whether the result assumes premium paid or premium received for the selected position. Do not compare outputs when the contract multiplier, price units, or omitted costs differ.
Formula and assumptions
Standard equity option multiplier = 100 shares per contract
Long call: breakeven = strike + premium paid
Long put: breakeven = strike − premium paid
Covered call: breakeven = share cost basis − call premium received
Cash secured put: breakeven = strike − put premium received
Expiration P&L per share:
Long call = max(underlying price − strike, 0) − premium paid
Long put = max(strike − underlying price, 0) − premium paid
Covered call = underlying price − share cost basis + min(strike − underlying price, 0) + call premium received
Cash secured put = premium received − max(strike − underlying price, 0)
Total position P&L equals per share P&L multiplied by 100 shares and the contract count. The calculator reports maximum gains and losses over nonnegative underlying prices. A missing breakeven means the position remains profitable or loss making across that range. Dollar figures exclude fees, taxes, dividends, and cash interest.
Limitations
This is an expiration payoff model for four specified positions, with a standard 100 share multiplier. It uses the entered stock purchase price as the covered call cost basis. It excludes fees, taxes, dividends, interest on collateral, early exercise, assignment before expiration, and adjusted contracts. It does not model spreads, changing positions, or broker margin requirements. Inputs must produce finite dollar results within the calculator’s supported cent precision. A mathematical breakeven is not a forecast or a recommendation.
Key terms
- Breakeven
- The contract price at which modeled expiration profit or loss equals zero, if that price is zero or higher.
- Option premium
- The option amount paid to buy a contract or received to sell one, stated per share.
- Contract multiplier
- The assumed number of underlying shares represented by one contract. This calculator uses 100.
Compare related tools
Option Breakeven Calculator shows expiration payoff for four positions. Options Greeks Calculator models how price sensitivity changes with the inputs. The two tools answer different questions and neither provides a live quote.
Use the options strategy pages to check the payoff shape, then compare the assumptions with your broker’s contract details before relying on the figures.
FAQ
How is a long call breakeven calculated?
For a long call, add the premium paid per share to the strike. With a $100 strike and $3 premium, the expiration breakeven is $103. Below the strike, the option expires without intrinsic value and the full premium is lost. Between the strike and breakeven, some premium is recovered but the position still loses money.
How does the contract count affect the result?
The calculator assumes 100 shares per contract. It multiplies per share gains and losses by 100 and by the entered whole number of contracts. It does not support index, mini, or adjusted contract multipliers.
Can a long put have no reachable breakeven?
A long put’s best result occurs if the underlying price reaches zero. If the premium paid exceeds the strike, even that outcome is a loss, so there is no nonnegative breakeven price. The result panel identifies this case instead of showing a negative underlying price.
What does the cash secured put result assume?
A cash secured put’s breakeven is strike minus premium received. The result assumes the position is held to expiration and ignores interest earned on cash collateral, fees, taxes, and assignment timing. Assignment before expiration can produce a different cash flow.
What does the covered call breakeven measure?
A covered call combines shares with one short call. This calculator uses the entered stock purchase price as the share cost basis and credits the call premium against that basis. It assumes the call is held to expiration and does not include dividends, other share purchases, fees, or taxes.
Related tools
Options Greeks Calculator shows modeled price sensitivity and time decay for an option. Black Scholes Pricer estimates a theoretical option value under its stated assumptions. Neither tool changes the expiration payoff calculated here.