Options Breakeven Calculator
Work out the breakeven price, payoff and profit of a call or put option from its strike price, premium and the current underlying price.
Recent
Formula
How the calculation works
The calculator adds the premium to the strike for a call, or subtracts it for a put, to find the breakeven price.
It then computes the payoff at the current underlying price, counting only the amount that is in the money.
Subtracting the premium from the payoff gives the profit, which is negative when the option expires worthless.
Common mistakes
- Forgetting that the premium is paid up front, so a call at 105 breaks even only if the underlying rises above that level.
- Mixing up the direction of the breakeven, adding the premium for a put when the put breakeven is the strike minus the premium.
When to use it
- Use it before buying a call or put to see the price the underlying must reach before you recover the premium.
- Use it to compare two option strikes side by side and judge which one gives a better profit for your market view.
Worked example
A call with a strike of 100 and a premium of 5 breaks even at 105, and with the underlying at 120 the payoff is 20, so the profit is 15.
Common questions
What does the breakeven price of an option mean?
It is the underlying price at which the option payoff exactly equals the premium paid, so above it a call buyer starts to profit.
Related tools
-
Land Area Converter
Convert between bigha, katha, shotok, acre and square feet.
-
Gold Weight Converter
Convert gold weight between bhori, ana, grams and tola.
-
Zakat Calculator
Work out zakat at 2.5% on wealth above the nisab threshold.
-
Gratuity Calculator
Gratuity due on leaving a job, counted per completed year of service.
-
Remittance Cost
What a remittance really costs once the fee and a weak exchange rate are counted.
-
Compare Two Job Offers
Compare two offers on total yearly value, counting bonus, allowances and commuting.
-
Gold Loan Value
How much a loan against gold is worth, from weight and purity.
-
Property Tax and Registration
The cost of buying a property beyond the price, due on the day.