Break-Even Options Calculator
Work out the exact underlying price where your call or put option stops losing money at expiration, plus your max gain, max loss and profit/loss at different price scenarios.
Option Inputs
Break-Even Breakdown
| Item | Calculation | Amount |
|---|---|---|
| Premium per contract | Enter premium above | - |
| Total premium | Enter contracts above | - |
| Commission | Enter commission above | - |
| Net premium | Total premium ± commission | - |
| Break-Even Price | Strike ± net cost/credit per share | - |
Scenario Analysis
| Scenario | Underlying Price | Profit / Loss At Expiration |
|---|---|---|
| Break-even − 10% | - | - |
| Break-even − 5% | - | - |
| At break-even | - | - |
| Break-even + 5% | - | - |
| Break-even + 10% | - | - |
| Your current price | - | - |
What Is Break-Even For An Option?
The break-even price is the underlying share price at which an option position neither makes nor loses money at expiration, once the premium paid or received is fully accounted for. For a long call or short put, profit increases as the underlying rises above break-even. For a long put or short call, profit increases as the underlying falls below break-even. Every options strategy has at least one break-even point, and knowing it before you trade helps you judge how big a price move you actually need.
How Break-Even Is Calculated
For a long call, break-even equals the strike price plus the premium paid per share (including commission). For a long put, it is the strike price minus the premium paid. For a short call, break-even equals the strike plus the premium received; for a short put, it equals the strike minus the premium received. In every case, one option contract represents 100 shares, so total premium is the per-share premium multiplied by 100 and by the number of contracts.
Long Vs Short Options: Why Risk Differs
Buying (going long) a call or put limits your maximum loss to the premium you paid, because you are never obligated to exercise a losing option. Selling (going short/writing) an option flips this: your maximum gain is capped at the premium received, but your potential loss can be very large, and for an uncovered short call it is theoretically unlimited, because there is no ceiling on how high a share price can rise. This is why brokers require margin to sell options but not to buy them.
What This Calculator Ignores
This tool calculates break-even and profit/loss as if the option is held to expiration, using intrinsic value only. It does not model time value (theta decay), implied volatility changes, dividends on the underlying stock, or the risk of early assignment on American-style options. Before expiration, an option's actual market price reflects all of these factors, so its quoted price can differ meaningfully from this calculator's expiration-based estimate.
Common Mistakes When Estimating Options Break-Even
Common errors include forgetting that one contract represents 100 shares (understating total premium by 100 times), leaving out commission on both the opening and closing trade, confusing the premium you see quoted per share with the total premium for the position, and assuming a short option's maximum loss is the same as a long option's (it is not — selling options carries materially different, often much larger, risk). Always double-check whether a figure you found elsewhere is quoted per share or for the whole contract.
What To Do With Your Break-Even Number
Once you know your break-even price, compare it with your own view on how far and how fast the underlying is likely to move before expiration. A break-even that requires a large move in a short time is a weaker trade than one requiring a small move over a longer period. Use the scenario table above to see how profit or loss changes at different underlying prices, and revisit the numbers if you add, close, or roll part of the position.
Frequently Asked Questions
What does "break-even" mean for an option?
The break-even price is the underlying share price at which an option position neither makes nor loses money at expiration, once the premium paid or received is accounted for. Above break-even a long call (or short put) is profitable; below it, a long put (or short call) is profitable, depending on the option type and whether you bought or sold it.
How do I calculate the break-even price for a call option?
For a long (bought) call, break-even equals the strike price plus the premium paid per share, including commission. For a short (sold) call, break-even equals the strike price plus the premium received per share, net of commission. The underlying needs to be at or above this price at expiration for the call to have positive intrinsic value.
How do I calculate the break-even price for a put option?
For a long (bought) put, break-even equals the strike price minus the premium paid per share. For a short (sold) put, break-even equals the strike price minus the premium received per share. The underlying needs to be at or below this price at expiration for the put to have positive intrinsic value.
Does break-even change if I sell (write) an option instead of buying it?
Yes. As the seller you receive the premium instead of paying it, so the break-even uses a net credit rather than a net cost, and the risk profile flips: maximum gain is capped at the premium received, while potential loss can be very large (a short put) or theoretically unlimited (a short call).
What is the difference between premium and break-even price?
The premium is the price you pay or receive to open the option position, quoted per share. The break-even price is a derived figure: the underlying price needed at expiration for that premium to be fully offset by the option's intrinsic value, so the trade neither gains nor loses money.
How many shares does one option contract represent?
For standard exchange-traded equity options, one contract represents 100 shares of the underlying stock. This calculator multiplies your per-share premium and strike figures by 100 and by the number of contracts to get total position values.
Does this calculator account for commission and fees?
Yes. Enter a combined commission figure per contract and it is added to your cost basis (long positions) or subtracted from your credit (short positions) before the break-even price and total premium figures are calculated. Leave it blank or at zero if your broker charges no commission.
Does this calculator account for time value or how close expiration is?
No. It calculates break-even and profit/loss as if the option is held to expiration, using only intrinsic value. Before expiration, an option's market price also reflects time value, implied volatility and interest rates, so its actual quoted price can differ from this calculator's expiration-based estimate.
What is the maximum loss on a long call or long put?
For both, the maximum loss is limited to the total premium paid plus commission, because the most you can lose by buying an option is what you paid for it. This is one reason buying options is sometimes seen as lower risk than selling them.
What is the maximum loss on a short call or short put?
For a short put, the maximum loss is large but finite: it occurs if the underlying falls to zero, capped at the strike value of the shares minus the premium received. For a short call, the maximum loss is theoretically unlimited, because there is no ceiling on how high the underlying could rise before expiration.
Why is the max loss on a short call described as unlimited?
Selling a call obligates you to deliver shares at the strike price if assigned, no matter how high the underlying has risen. Since a share price has no fixed ceiling, the loss on an uncovered short call has no theoretical limit, which is why brokers apply strict margin requirements to this type of position.
Can the break-even price change before expiration?
The break-even price calculated here is fixed for a given strike, premium and contract count, describing the outcome at expiration. What can change before expiration is the option's live market price, which may imply a different effective break-even if you plan to close the position early rather than hold to expiry.
Does this work for any currency, or only GBP?
It works in any currency. Enter the strike price, premium, commission and current price consistently in the same currency and the results dashboard will be correct in that currency; the calculator does not perform any currency conversion.
Is this financial advice?
No. This tool provides a mathematical estimate based on the figures you enter. It is not financial, investment, or tax advice, and it does not consider your personal circumstances, risk tolerance, or brokerage account terms. Options trading carries a high level of risk and is not suitable for all investors.
Where can I learn more about how options work?
Investor.gov (the U.S. Securities and Exchange Commission's investor education site), the FCA's InvestSmart hub, and Investopedia's options education content all provide independent, free background reading on how options pricing, exercise and assignment work.
Sources
Last updated: 2026-07-05. This page gives an estimate only, assumes the position is held to expiration, and is not financial, investment, or tax advice.