Iron Condor Payoff Calculator
A short iron condor is a defined-risk, range-bound options strategy built from a put credit spread and a call credit spread. You profit when the underlying stays between your two short strikes. This calculator computes the maximum profit, maximum loss, both breakeven prices and the profit or loss at any expiration price. Enter the four strikes, the net credit received and the contract multiplier (100 for standard US equity options).
Iron condor payoff formula
Short put payoff = -max(0, short put strike - price)
Long put payoff = +max(0, long put strike - price)
Short call payoff = -max(0, price - short call strike)
Long call payoff = +max(0, price - long call strike)
P/L per share = net credit + sum of the four leg payoffs
Total P/L = P/L per share * multiplier
Max profit = net credit * multiplier
Max loss = (max wing width - net credit) * multiplier
Lower breakeven = short put strike - net credit
Upper breakeven = short call strike + net credit
Wing width is the distance between a short strike and its protective long strike. Max loss uses the wider of the put wing and the call wing.
Worked example
Strikes 90 / 95 / 105 / 110, net credit $2, multiplier 100. Wing widths are both 5. If the underlying closes at $100 (between the short strikes), all four options expire worthless and you keep the credit: P/L = $2 * 100 = $200.00. Maximum profit is $200.00. Maximum loss is (5 - 2) * 100 = $300.00. Lower breakeven = 95 - 2 = $93.00; upper breakeven = 105 + 2 = $107.00.
Iron condor: frequently asked questions
What is an iron condor?
A short iron condor is a four-leg, defined-risk options strategy: sell an out-of-the-money put, buy a further out-of-the-money put, sell an out-of-the-money call, and buy a further out-of-the-money call, all on the same underlying and expiry. You receive a net credit and profit when the underlying stays between the two short strikes at expiration.
What are the maximum profit and loss of an iron condor?
Maximum profit is the net credit received, kept in full when the underlying expires between the two short strikes. Maximum loss is the wider of the two wing widths minus the net credit, multiplied by the contract multiplier. With equal wing widths, max loss = wing width minus net credit.
Where are the breakevens?
There are two breakevens. The lower breakeven is the short put strike minus the net credit per share. The upper breakeven is the short call strike plus the net credit per share. Between these two prices the position is profitable at expiration.
Sources and method
- U.S. Securities and Exchange Commission investor education on options: Investor.gov: Options.
- Options Clearing Corporation: theocc.com.
- Payoff is the standard sum of four option expiration values plus the net credit; no proprietary data is used.
Reviewed by the CalculatorHub team, edited by James Graham, 19 June 2026. See our methodology.