Single Option Break-Even Calculator
The break-even price of a long option is the underlying price at which the position neither gains nor loses money at expiration, once the premium paid has been recovered from intrinsic value. For a call it sits above the strike; for a put it sits below. This calculator takes the strike, the premium paid per share, the current underlying price, and the option type, then returns the break-even price, the current intrinsic value, the dollar move required, and the percentage move the underlying must make before expiration.
Break-even formula
Call break-even = strike + premium per share
Put break-even = strike - premium per share
Current intrinsic = max(spot - strike, 0) call; max(strike - spot, 0) put
Move required = break-even - spot
Move required % = (break-even - spot) / spot * 100
The move required is signed: a positive value for a call means the underlying must rise; a negative value for a put means it must fall. At expiration the option profits beyond the break-even and loses inside it.
Using the result
- The further out of the money the option, the larger the move required to break even.
- A higher premium pushes the break-even further from the strike.
- Break-even is an expiration concept; before expiry remaining time value lowers the effective break-even on a sale.
- Compare the required percentage move to the underlying's typical volatility to judge feasibility.
- Add commissions to the premium for a true live-trade break-even.
Option break-even: frequently asked questions
How do you calculate the break-even of a call option?
For a long call held to expiration, the break-even price equals the strike price plus the premium paid per share. The underlying must close above this price at expiration for the position to show a profit, because the premium must first be recovered from intrinsic value.
How do you calculate the break-even of a put option?
For a long put held to expiration, the break-even price equals the strike price minus the premium paid per share. The underlying must close below this price for the position to be profitable, since the put gains value only as the underlying falls below the strike.
What is the required move to break even?
The required move is the difference between the current underlying price and the break-even price, often expressed as a percentage of the current price. It tells you how far and in which direction the underlying must travel before expiration for the option to stop losing money.
Does break-even include time value?
The break-even formula here is the expiration break-even, which assumes all time value has decayed to zero. Before expiration an option can be sold for its remaining time value, so the effective break-even on an early exit differs. This calculator models the hold-to-expiration case.
Does this account for commissions and assignment fees?
No. The break-even shown uses only the strike and premium you enter. Broker commissions, exercise fees, and assignment costs push the real break-even slightly further away. Add your per-contract costs to the premium for a precise live-trade break-even.
Official sources
- U.S. SEC Investor.gov: Options glossary.
- The Options Clearing Corporation (OCC): Standardized options education.
Reviewed by the CalculatorHub team, edited by James Graham, 17 June 2026. See our methodology.