Options Break-Even Calculator
Calculate the break-even price for call and put options based on strike price and premium paid.
Know your profit threshold before entering.
Options Break-Even
Options break-even is the underlying price at which your option position neither makes nor loses money at expiration.
For a long call:
Break-Even = Strike Price + Premium Paid
For a long put:
Break-Even = Strike Price − Premium Paid
For a short call (writing):
Break-Even = Strike Price + Premium Received
(Profitable below this level)
For a short put (writing):
Break-Even = Strike Price − Premium Received
(Profitable above this level)
Important considerations:
- The premium represents your maximum loss on a long option
- For 1 contract = 100 shares, so total cost = premium × 100
- Break-even does not account for commissions — add those to the premium
- Before expiration, options have time value so you may be profitable before reaching break-even
- Implied volatility changes affect option value independently of the underlying price