About the Options Profit Calculator
This options profit calculator shows what an options trade is worth at expiration for any stock price you choose. Pick a strategy — long or short call, long or short put, bull call spread, bear put spread or covered call — enter the strike and premium, the number of contracts and a target stock price, and it returns your profit or loss, return on risk, break-even price, maximum profit and maximum loss.
The payoff chart plots profit and loss across a wide range of prices, so you can see at a glance where the trade makes money and how much you could lose. It is useful for planning a trade before you place it, comparing a naked option with a spread, or deciding where to set a covered-call strike.
Results are for expiration only: they ignore time value before expiry, commissions, early assignment and dividends. Standard US equity options cover 100 shares per contract; change the multiplier for mini or index contracts.
With the default inputs, the profit / loss at target price is $1,500.00. Change any value above to recalculate instantly.
How to use the options profit calculator
- 1Choose the options strategy you are considering.
- 2Enter the strike price and the premium per share (for spreads, both legs).
- 3Enter the number of contracts — each standard contract covers 100 shares.
- 4Enter the stock price you expect at expiration.
- 5Read the profit, break-even and maximum risk, then check the payoff chart across other prices.
Formula and method
At expiration an option is worth only its intrinsic value: a call pays max(S − K, 0) and a put pays max(K − S, 0), where S is the stock price and K the strike. Profit is that value minus the premium paid (for buyers) or the premium kept minus the value owed (for sellers), multiplied by the number of shares controlled, N = contracts × shares per contract.
A vertical spread combines a bought and a sold option of the same type; the net debit is the premium paid minus the premium received, which caps both the maximum loss and the maximum gain. A covered call adds the stock gain or loss (S − purchase price) to the call premium and caps upside at the strike. Break-even is where profit equals zero.
- S
- Stock price at expiration
- K
- Strike price
- P
- Option premium per share
- N
- Shares controlled (contracts × multiplier)
Worked examples
Buy one $100 call for $5, stock ends at $120
The call is worth $20 per share at expiration ($120 − $100). Subtracting the $5 premium leaves $15 per share, or $1,500 on one contract — a 300% return on the $500 paid. The stock must be above $105 at expiration to profit.
Buy two $50 puts for $2.50, stock falls to $44
Each put is worth $6 at expiration ($50 − $44). After the $2.50 premium that is $3.50 per share across 200 shares — a $700 profit, or 140% of the $500 paid. The most the puts could ever make is $9,500 if the stock went to zero.
Bull call spread 100/110 for a $3.50 debit, stock at $115
Buying the $100 call for $6 and selling the $110 call for $2.50 costs a $3.50 net debit ($350). Above $110 the spread is worth its full $10 width, so the profit is capped at $650 — 185.7% of the $350 at risk.
Covered call: stock bought at $48, sell the $50 call for $1.50, stock drops to $45
The shares lose $3 each, but the $1.50 call premium cushions the drop, so the loss is $150 on 100 shares. Break-even falls to $46.50, and the most you can make is $350 if the stock is at or above $50 at expiration.
Sell one naked $100 call for $3, stock ends at $95
The call expires worthless below $100, so the seller keeps the full $3 premium: $300 on one contract. Break-even is $103. Because a naked short call can lose without limit if the stock rallies, there is no finite capital at risk and the return on risk is not defined.
Frequently asked questions
How do you calculate profit on a call option?+
At expiration, subtract the strike from the stock price (or use zero if the stock is below the strike), subtract the premium you paid, and multiply by 100 shares per contract. A $100 call bought for $5 with the stock at $120 makes ($20 − $5) × 100 = $1,500.
What is the break-even price for an option?+
For a long call, break-even is the strike plus the premium; for a long put, it is the strike minus the premium. For a debit spread, add (calls) or subtract (puts) the net debit from the bought strike.
Why is one option contract 100 shares?+
Standardized US equity options each cover 100 shares of the underlying stock, so a quoted premium of $2.00 costs $200 per contract. Some index, mini and non-US contracts use different multipliers, which you can change above.
Does this calculator show profit before expiration?+
No. Before expiration an option also has time value that depends on volatility, interest rates and days remaining. Use the Black-Scholes calculator to estimate an option’s value before it expires.
What is the maximum loss when buying an option?+
When you buy a call or put, the most you can lose is the premium you paid. Selling options is different: a naked short call has theoretically unlimited risk, and a short put can lose the strike minus the premium.
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.