Options Profit Calculator
Payoff and break-even for a long call or put.
Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths
Your values
ⓘ Live results
- Profit / loss
- $850.00
- Break-even price
- $103.50
- Total premium paid
- $350.00
- Return on premium
- 242.86%
Working
- 1intrinsic $12.00 - premium $3.50 = $8.50 per share
Quick answer
At expiration, a long call's profit per share is max(0, stock price − strike) − premium, and a long put's is max(0, strike − stock price) − premium. Multiply by 100 shares per contract. A $100-strike call bought for $3.50 is worth $12 if the stock finishes at $112, for a profit of $8.50 a share, or $850 per contract. The break-even price is $103.50.
What the Options Profit calculator does
This calculator shows what a long call or long put is worth on its expiration date for any stock price you enter: the total profit or loss, the break-even price, the premium you paid and your return on that premium. It covers standard US equity options, where one contract controls 100 shares.
Use it to plan a trade before you place it, to see how far the stock must move to make money, or to check a position as expiry approaches. Buyers of options can lose at most the premium paid; that is the floor shown when the option expires worthless.
The figures are for expiration only. Before expiry an option also carries time value, which depends on volatility and days remaining, so its market price will be higher than the intrinsic value used here. Commissions and contract fees are not included. Options are risky and not suitable for everyone; this tool illustrates payoffs and is not a recommendation.
The formula
Call P/L = (max(0, S − K) − premium) × 100 × contracts Put P/L = (max(0, K − S) − premium) × 100 × contracts
| Symbol | Meaning | Unit |
|---|---|---|
| S | Stock price at expiration | $ per share |
| K | Strike price of the option | $ per share |
| premium | Price paid for the option, quoted per share | $ per share |
| 100 | Standard contract multiplier for US equity options | shares per contract |
| contracts | Number of option contracts bought | — |
These are the standard expiration payoff formulas set out in the Options Clearing Corporation's *Characteristics and Risks of Standardized Options*, the disclosure document every US options trader receives. Break-even is strike + premium for a call and strike − premium for a put.
They do not apply to short (written) options, multi-leg spreads, or valuing an option before expiry, which requires a pricing model such as Black-Scholes. Some index and adjusted options use different multipliers.
Worked examples
Long call that finishes in the money
You buy one $100-strike call for $3.50 and the stock closes at $112 on expiration day.
Inputs
- Option typeLong call
- Strike price100 $
- Premium per share3.5 $
- Price at expiry112 $
- Contracts1
Result
- Profit / loss$850.00
- Break-even price$103.50
- Total premium paid$350.00
- Return on premium242.86%
The call is worth $12 a share, so the $350 outlay becomes a profit of $850, a 242.86% return on premium. The same 12% move in the stock would have earned 12% on shares, which shows the leverage options give in both directions.
Protective put during a fall
You buy five $50-strike puts at $2.20 each, and the stock drops to $44 by expiry.
Inputs
- Option typeLong put
- Strike price50 $
- Premium per share2.2 $
- Price at expiry44 $
- Contracts5
Result
- Profit / loss$1,900.00
- Break-even price$47.80
- Total premium paid$1,100.00
- Return on premium172.73%
The puts gain $1,900 after the $1,100 premium. If you also owned 500 shares, that gain offsets most of the $3,000 drop in their value, which is how a put works as insurance.
Call that expires out of the money
You buy two $200-strike calls for $6 each, but the stock ends at $195.
Inputs
- Option typeLong call
- Strike price200 $
- Premium per share6 $
- Price at expiry195 $
- Contracts2
Result
- Profit / loss-$1,200.00
- Break-even price$206.00
- Total premium paid$1,200.00
- Return on premium-100%
Both contracts expire worthless and you lose the full $1,200 premium, a −100% return. The stock needed to finish above $206 just to break even.
Payoff of a $100 call bought for $3.50
A long option's loss is capped at the premium, while its gain grows dollar for dollar once the stock passes break-even. This table shows one contract at different expiry prices:
| Stock price at expiry | Option value per share | Profit / loss |
|---|---|---|
| $95 | $0.00 | −$350 |
| $100 | $0.00 | −$350 |
| $103.50 | $3.50 | $0 (break-even) |
| $110 | $10.00 | +$650 |
| $120 | $20.00 | +$1,650 |
Calls versus puts at a glance
- Long call: profits if the stock rises above strike + premium. Maximum loss is the premium; maximum gain is unlimited in theory.
- Long put: profits if the stock falls below strike − premium. Maximum loss is the premium; maximum gain is the strike minus premium (if the stock goes to zero), times 100.
- In the money: a call with stock above strike, or a put with stock below strike. Being in the money is not the same as being profitable; you also have to recover the premium.
- Out of the money at expiry: the option expires worthless and the whole premium is lost.
Why your broker shows a different P/L before expiry
Before expiration an option's price includes time value on top of intrinsic value. Time value shrinks as expiry approaches (theta decay) and rises or falls with implied volatility. That is why an option can lose money even when the stock moves your way slowly, or gain value when volatility jumps. Use this calculator to understand the end-point; use your broker's analytics, which model volatility, for mid-life values.
Gains on options held a year or less are generally taxed as short-term capital gains; see the capital gains tax calculator for the effect on your net result, and the stock profit calculator to compare with simply buying shares.
How to use the Options Profit Calculator
- 1Choose long call (betting on a rise) or long put (betting on a fall or hedging).
- 2Enter the strike price and the premium per share exactly as quoted (a premium shown as 3.50 costs $350 per contract).
- 3Enter the stock price you expect at expiration, and the number of contracts.
- 4Read profit or loss, break-even price and return on premium; try several stock prices to see the range.
Frequently asked questions
How do you calculate the break-even price of an option?
For a call, add the premium to the strike; for a put, subtract it. A $50 call bought for $2 breaks even at $52 at expiration.
What is the most I can lose buying an option?
The premium you paid plus any commissions. A long option can never be worth less than zero, so the return on premium bottoms out at −100%, calculated the same way as any return on investment.
Why multiply by 100?
A standard US equity option contract covers 100 shares, and premiums are quoted per share. A quote of $1.25 means $125 per contract.
Should I sell my option before expiration or exercise it?
Selling before expiry captures any remaining time value, which exercising throws away, so traders usually sell. In-the-money options are often exercised automatically at expiry if you hold them, so check your broker's rules.
Can I use this for selling (writing) options?
Not directly. A short option's profit is the mirror image: the premium received minus the intrinsic value at expiry, and losses on a short call are uncapped.
References
- Characteristics and Risks of Standardized Options — The Options Clearing Corporation
- Options, Futures, and Other Derivatives — John C. Hull (Pearson)
- Investor Bulletin: An Introduction to Options — US Securities and Exchange Commission
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
- Last reviewed: October 24, 2026
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