About the Iron Condor Calculator
An iron condor combines a short put spread and a short call spread on the same underlying and expiration. You sell an out-of-the-money put and call, buy further out-of-the-money wings for protection, and collect a net credit. If the price stays between the short strikes until expiration, every option expires worthless and you keep the whole credit; if it moves beyond a wing, your loss is capped at the spread width minus the credit.
This iron condor calculator takes the four strikes (long put, short put, short call, long call), the net credit per share and the number of contracts, and returns the maximum profit, maximum loss, lower and upper breakevens, the return on the capital at risk and the profit or loss at any expiry price you choose. The payoff chart shows the classic flat-topped profit zone.
It works for stock, ETF and index options with a 100 multiplier. Results are at expiration and ignore commissions, early assignment and the possibility of closing the trade early. Unequal wing widths are supported; the maximum loss uses the wider wing.
With the default inputs, the maximum profit is $160.00. Change any value above to recalculate instantly.
How to use the iron condor calculator
- 1Enter the four strikes from lowest to highest: long put, short put, short call, long call.
- 2Enter the net credit per share you receive for the whole condor.
- 3Enter the number of contracts.
- 4Read the max profit, max loss and breakevens, and use the what-if price to test outcomes.
Formula and method
The net credit C is the most you can earn: it is kept when the underlying finishes between the short put strike K2 and the short call strike K3, because all four options expire worthless. Below K2 the short put spread loses value dollar for dollar until the long put at K1 caps the loss; above K3 the short call spread does the same until the long call at K4.
Only one side can finish in the money, so the maximum loss is the wider spread width minus the credit. The breakevens are where the loss on one spread equals the credit received. Profit at any expiry price X is C − max(K2 − X, 0) + max(K1 − X, 0) − max(X − K3, 0) + max(X − K4, 0), times 100 shares per contract.
- K1, K2
- Long put and short put strikes
- K3, K4
- Short call and long call strikes
- C
- Net credit per share
- n
- Number of contracts
Worked examples
90/95/105/110 condor for a $1.60 credit
Each wing is $5 wide and the credit is $1.60, so you risk $3.40 per share ($340) to make $160 — a 47% return on risk. The trade is profitable at expiry anywhere between $93.40 and $106.60.
Index condor, 50-point wings, 2 contracts
Two condors with 50-point wings and a 12.5-point credit earn $2,500 if the index ends between 4,350 and 4,650, and risk $7,500. At 4,380 the index is still above the short put, so the full credit is kept.
Tested call side at expiry
At $54 the short $53 call is $1 in the money while the $55 call is worthless. The $1 loss minus the $0.60 credit leaves −$0.40 per share, or −$400 across ten contracts.
Frequently asked questions
What is an iron condor?+
An iron condor is a four-leg options strategy: sell an out-of-the-money put and call, and buy a further out-of-the-money put and call as protection. It profits when the underlying stays in a range and has both limited profit and limited loss.
How do you calculate the max loss on an iron condor?+
Max loss is the width of the wider spread minus the net credit, times 100 per contract. With $5 wings and a $1.60 credit, the maximum loss is $3.40 per share, or $340 per condor.
What are the breakeven points of an iron condor?+
There are two: the short put strike minus the credit, and the short call strike plus the credit. Between them the trade is profitable at expiration; outside them it loses money up to the maximum loss.
What is a good credit for an iron condor?+
Many traders aim to collect about one-third of the wing width, for example $1.65 on $5 wings. A larger credit means more reward but usually short strikes closer to the price, which raises the chance of a loss.
Should I hold an iron condor to expiration?+
Many traders close condors early — often at 50% of max profit — to avoid gamma risk near expiration, when small moves can swing the position from max profit to max loss. Holding also risks pin risk and early assignment on the short legs.
What is the difference between an iron condor and an iron butterfly?+
An iron butterfly sells the put and call at the same strike, collecting a larger credit with a narrower profit zone. An iron condor separates the short strikes, giving a wider range of profitable prices for a smaller credit.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.