Covered Call Break-Even Calculator
Break-even and max profit for a covered call.
Enter your values
Enter the stock cost basis in $/share.
Enter the call strike price in $.
Enter the premium received in $/share.
Enter the number of shares you are working with.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Break-even price
- $48.50
- Max profit if called away
- $650.00
- Downside cushion from premium
- 3%
- Max return on capital
- 13%
Quick answer
A covered call's break-even is your stock cost basis minus the premium received; maximum profit is capped at the strike price plus the premium.
Breakeven = stock cost - premium received; Max profit = strike - cost + premium
At a glance
| What it does | Break-even and max profit for a covered call. |
|---|---|
| Category | Investing |
| Inputs needed | Stock cost basis, Call strike price, Premium received, Number of shares |
| Main output | Break-even price |
| Formula | Breakeven = stock cost - premium received; Max profit = strike - cost + premium |
| Cost | Free — no sign-up, no download |
How to use the Covered Call Break-Even Calculator
- 1Enter your stock cost basis, the strike you're selling, and the premium received.
- 2Enter how many shares (each contract covers 100 shares).
- 3See your break-even price and the maximum profit if the stock is called away at expiration.
Inputs explained
- Stock cost basis($/share)
- Enter the stock cost basis in $/share.
- Call strike price($)
- Enter the call strike price in $.
- Premium received($/share)
- Enter the premium received in $/share.
- Number of shares
- Enter the number of shares you are working with.
Worked example
Using the values the calculator loads with:
Inputs
- Stock cost basis50 $/share
- Call strike price55 $
- Premium received1.50 $/share
- Number of shares100
Results
- Break-even price$48.50
- Max profit if called away$650.00
- Downside cushion from premium3%
- Max return on capital13%
Frequently asked questions
What if the stock stays below the strike?
You keep the shares and the premium, and can sell another call in the next cycle.
What's the main risk?
Your upside is capped at the strike, so you give up gains above it in exchange for the premium income.
What do I need to enter into the Covered Call Break-Even Calculator?
Just 4 values: stock cost basis, call strike price, premium received, number of shares. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Covered Call Break-Even Calculator work out the answer?
A covered call's break-even is your stock cost basis minus the premium received; maximum profit is capped at the strike price plus the premium. It applies the formula Breakeven = stock cost - premium received; Max profit = strike - cost + premium and shows the working so you can check each step by hand.
Is the Covered Call Break-Even Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.