Iron Condor Profit Calculator
A short iron condor sells an out-of-the-money put spread and an out-of-the-money call spread on the same underlying and expiration, collecting a net credit. It profits as long as the underlying stays between the two short strikes through expiration, and its risk is defined by the long protective wings. This calculator takes your short call strike, short put strike, wing width, net credit, and contract multiplier, then returns maximum profit, maximum loss, both breakeven prices, and return on risk so you can judge the trade before placing it.
Iron condor formula
Max profit = net credit per share * multiplier
Max loss = (wing width - net credit per share) * multiplier
Upper breakeven = short call strike + net credit per share
Lower breakeven = short put strike - net credit per share
Return on risk = max profit / max loss * 100
The position reaches maximum profit when the underlying expires between the two short strikes. Maximum loss occurs if the underlying moves beyond either long wing strike. This model assumes equal put-side and call-side wing widths.
Using the result
- A wider gap between short strikes raises the probability of profit but lowers the credit collected.
- Narrower wings reduce capital at risk but also reduce the credit you can collect.
- Net credit must be less than the wing width, or the trade would be a guaranteed profit (which markets do not offer).
- Return on risk above 100% requires a credit exceeding half the wing width, usually with low probability of success.
- Add commissions to estimate true breakevens on a live trade.
Iron condor: frequently asked questions
What is an iron condor?
An iron condor is a defined-risk options strategy that sells an out-of-the-money put spread and an out-of-the-money call spread on the same underlying and expiration. It collects a net credit and profits when the underlying stays between the two short strikes. Maximum loss is capped by the long wings.
How do you calculate iron condor max profit and max loss?
Maximum profit equals the net credit received times the contract multiplier. Maximum loss equals the wider wing width minus the net credit, times the multiplier. With equal wing widths, max loss is wing width minus net credit, times the multiplier. Both assume the position is held to expiration.
What are the iron condor breakeven points?
There are two breakevens. The upper breakeven is the short call strike plus the net credit per share. The lower breakeven is the short put strike minus the net credit per share. The position is profitable when the underlying expires between these two prices.
What is return on risk for an iron condor?
Return on risk is the maximum profit divided by the maximum loss, expressed as a percentage. It tells you how much you can earn relative to the capital at risk. A higher ratio is more attractive, but iron condors with high return on risk usually have a lower probability of staying inside the profit zone.
Does this assume equal wing widths?
This calculator uses a single wing width input applied to both the put spread and the call spread, the most common symmetric iron condor construction. Maximum loss is computed as that wing width minus the net credit. For asymmetric condors, model each spread separately.
Official sources
- U.S. SEC Investor.gov: Options glossary.
- The Options Clearing Corporation (OCC): Standard equity option contract specifications.
Reviewed by the CalculatorHub team, edited by James Graham, 17 June 2026. See our methodology.