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Option Break Even Calculator

Work out option break even instantly with clear inputs, formula shown and shareable results.

About Option Break Even Calculator

A long option only profits at expiry once the underlying clears the strike by more than the premium paid. The break-even is strike plus premium for a call and strike minus premium for a put, and the premium is the most you can lose.

Formula

Break-even

Call: strike + premium; Put: strike - premium

Worked example

With the default values below, Option Break Even Calculator returns Break-Even Price At Expiry of $1,038.0000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Option Typeone of Long call, Long put
Long call
Strike Priceminimum 0
1,000
Premium Paidminimum 0
38
Current Spot Priceminimum 0
985

Results

Break-Even Price At Expiry
$1,038.0000
Move From Spot To Break Even
5.381%
Maximum Loss
$38.00
Intrinsic Value Today
$0.0000

Step by step

  1. 1Values used
  2. 2Break-even
  3. 3Break-Even Price At Expiry= 1,038.0000
  4. 4Move From Spot To Break Even= 5.381
  5. 5Maximum Loss= 38.00
  6. 6Intrinsic Value Today= 0.0000

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Does the option have to reach break-even to make money?

Not before expiry — time value means it can be sold profitably on a smaller move. At expiry the break-even is binding.

Why do most options expire worthless?

The underlying must move enough to cover the premium, and the majority of small moves do not.

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