Option Profit Calculator
Use this free option profit calculator to work out the profit, loss, breakeven price, ROI, max profit and max loss of any call or put option before you place the trade. Pick call or put, buy or sell, enter your strike and premium, and read the result instantly.
| Stock price at expiry | Intrinsic value | Profit / loss | Return |
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The highlighted row is the closest step to your breakeven price. All results assume the option is held to expiration and ignore taxes, assignment risk, dividends and early exercise.
An option profit calculator for calls and puts
An option contract does not move dollar for dollar with the stock behind it, and that is exactly why traders lose money on positions they thought were winners. This option profit calculator removes the guesswork: it applies the standard payoff formulas to your strike, your premium and your contract size, then shows you the number that actually lands in your account at expiration.
The calculator covers the four basic positions that every option strategy is built from — long call, long put, short call and short put. Switch between them with the two toggles and every output on the page recalculates: profit and loss in dollars, return in percent, the breakeven stock price, the most you can make and the most you can lose.
How to calculate option profit
Every equity option controls 100 shares, so the per-share numbers you see on a broker screen must be multiplied by 100 and then by the number of contracts. The profit of an option at expiration is its intrinsic value minus what you paid for it.
Call option profit formula
A call only has value at expiration if the stock finishes above the strike. Below the strike it expires worthless and you lose the whole premium — no more, but no less.
Put option profit formula
A put is the mirror image: it gains value as the stock falls below the strike, and it expires worthless if the stock finishes above it.
A worked example
You buy one call with a $100 strike for a $3.50 premium and the stock closes at $112. The intrinsic value is $12, you paid $3.50, so you keep $8.50 per share. One contract is 100 shares, which makes $850 before commissions — a 243% return on the $350 you risked. Change the closing price to $101 in the option profit calculator above and the same trade turns into a $250 loss, even though the stock went up.
What is the breakeven price of an option?
The breakeven is the stock price at which your position returns exactly what it cost. It is the single most useful number an option profit calculator gives you, because it tells you how far the stock has to move just for you to get your money back.
- Long call breakeven = strike price + premium paid
- Long put breakeven = strike price − premium paid
- Short call breakeven = strike price + premium received
- Short put breakeven = strike price − premium received
Buyers need the stock to travel past the breakeven; sellers keep the full premium as long as the stock stays on their side of it. In the payoff chart above, the breakeven is exactly where the line crosses zero.
Max profit and max loss on long and short options
Risk is not symmetrical between buying and selling options, and the calculator makes the difference obvious.
- Long call — loss capped at the premium paid, profit theoretically unlimited as the stock rises.
- Long put — loss capped at the premium paid, maximum profit when the stock goes to zero: (strike − premium) × 100 per contract.
- Short call — profit capped at the premium received, loss theoretically unlimited if the stock keeps climbing. Naked short calls carry the largest risk in options trading.
- Short put — profit capped at the premium received, maximum loss (strike − premium) × 100 per contract if the stock goes to zero.
Understanding option ROI
A dollar figure means little on its own — $850 is excellent on $350 of capital and poor on $35,000. When you buy an option the calculator divides your profit by the total cost of the position, commissions included, which is the real capital you put at risk. When you sell an option there is no upfront cost, so the return is shown against the premium you collected instead.
Comparing that return against the size of the move required is what separates a cheap lottery ticket from a considered trade. Run several strikes through the option profit calculator and the trade-off becomes visible: further out-of-the-money strikes show bigger percentage returns and a breakeven the stock is much less likely to reach.
What this calculator does not model
These are expiration payoffs, the value of the position on the day the contract expires. Before expiration an option also carries time value, which decays every day, and its price reacts to implied volatility and interest rates. A position can be profitable at expiration and still be underwater a week after you opened it. Assignment on short positions, dividends, taxes and early exercise are also outside the scope of the calculation.
Frequently asked questions
How do I calculate the profit on a call option?
Subtract the strike price from the stock price at expiration, floor the result at zero, subtract the premium you paid, then multiply by 100 and by the number of contracts. The option profit calculator above does this for you and adds commissions.
Why is my option losing money when the stock went up?
Because the stock has to move past the breakeven, not just past the strike. A call bought for $3.50 on a $100 strike does not break even until $103.50 at expiration. Anything between $100 and $103.50 is still a loss.
How many shares is one option contract?
One standard equity option contract represents 100 shares, which is why every result is multiplied by 100. Adjusted contracts after a split or merger can differ, so check the contract specification with your broker.
Can I use this option profit calculator for spreads?
Calculate each leg separately and add the results. A vertical spread, for example, is a long option and a short option at different strikes — run both, then sum the two profit figures.
Is the calculator free?
Yes. It runs entirely in your browser, needs no account, and none of the numbers you type are sent anywhere or stored.
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