Option Breakeven Calculator
Before placing an options trade, knowing the breakeven price at expiration is essential for evaluating whether the trade makes sense. For a long call option, you need the stock to rise above the strike price by at least the amount of premium paid before you start profiting. For a long put option, the stock must fall below the strike price by at least the premium paid. This calculator handles both calls and puts simultaneously, showing breakeven prices, required stock move as a percentage of the current stock price, and the maximum loss (the premium paid). It is useful for quickly screening whether an option's premium is reasonable given your price target.
Breakeven formula
Call Breakeven = Strike + Call Premium
Put Breakeven = Strike - Put Premium
Required Move (call) = (Call Breakeven - Stock Price) / Stock Price * 100
Required Move (put) = (Stock Price - Put Breakeven) / Stock Price * 100
These breakeven prices are at expiration. The required move is the percentage change in the stock price from its current level needed to reach breakeven at expiration. Maximum loss on each trade is the premium paid.
Breakeven and trade selection
- Compare the required stock move to the stock's historical daily range and expected catalyst (e.g. earnings) to judge likelihood of reaching breakeven.
- A call with a 10% required move in 30 days needs the stock to be very volatile or have a major catalyst.
- Lower premium options have further out-of-the-money strikes with larger required moves and lower probability of profit.
- Maximum profit on a long call is theoretically unlimited; maximum profit on a long put is strike minus premium (if stock goes to zero).
- At-the-money options have the smallest required move for the premium paid relative to near-the-money options, but more time value at risk.
Frequently asked questions
What is the breakeven price for a call option?
For a long call option, the breakeven price at expiration is the strike price plus the premium paid. At this stock price, the profit from exercising the call exactly offsets the cost of the option. Above breakeven the call is profitable.
What is the breakeven price for a put option?
For a long put option, the breakeven price at expiration is the strike price minus the premium paid. At this stock price, the profit from exercising the put exactly offsets the cost of the option. Below breakeven the put is profitable.
Does the breakeven price change before expiration?
The breakeven at expiration is fixed at strike plus or minus premium. However, before expiration the option has time value, so the stock price at which your position breaks even in market-value terms changes daily as time value decays.
What is the maximum loss on a long call or put?
For a long call or put, the maximum loss is limited to the premium paid. If the option expires worthless (stock below strike for a call, or above strike for a put), you lose 100% of the premium, but nothing more. This limited-risk feature is a key advantage of buying options.
How do multiple legs affect breakeven?
For multi-leg strategies like straddles, spreads, or iron condors, calculate the net premium (debit or credit) and adjust each leg's breakeven accordingly. For a straddle: the upper breakeven is strike + total premium and the lower breakeven is strike minus total premium.
Official sources
- Options Clearing Corporation: theocc.com.
- CBOE Options Institute: cboe.com/education.
- SEC Investor Education (options): sec.gov/investor.
Reviewed by the CalculatorHub team, edited by James Graham, 15 June 2026. See our methodology.