Options Breakeven Calculator

Pick whether you're buying or selling a call or put. Enter the strike price and premium. If you add the current stock price, you'll see the breakeven distance as a percentage — that's the number I actually care about.

Use the breakeven distance as a sanity check. If you're buying a call and the stock needs to rally 15% in 30 days to break even, that's probably a bad trade. If you're selling puts, compare your breakeven distance to the expected move from the Probability Calculator — if your breakeven is inside the 1 standard deviation move, you're taking on more risk than you think.

If you're running the wheel, the put breakeven is your most important number. That's the price where assignment turns into a loss. As you collect more premiums over multiple rounds, your effective breakeven drops — track that with the Cost Basis Tracker.

I run this before every single trade. Takes 10 seconds. Here's when it matters most:

• Before any trade: Run the breakeven first. If a call needs a 20% rally in 30 days to break even, skip it. That's not a trade — it's a lottery ticket.
• Comparing two strikes on the same stock: Punch in both and compare the breakeven distances. The difference tells you exactly how much extra risk you're taking for that extra premium.
• Checking if CSP premium is worth the risk: Enter your put strike and premium. If the breakeven sits above a major support level, you probably need a lower strike or more premium. Don't sell puts with thin cushions.
• Teaching someone how options work: The breakeven formula is the clearest way to explain calls and puts. I use this calculator when friends ask me “how do options work?”

The breakeven price is where you make exactly $0 at expiration. Not a profit, not a loss. If you bought the option, the stock has to move past breakeven for you to make money. If you sold it, the stock has to stay on your side of breakeven for you to keep the premium.

The Formulas

Long Call: Strike + Premium Paid. Stock has to get above this number for you to profit.

Long Put: Strike − Premium Paid. Stock has to drop below this for you to profit.

Short Call: Strike + Premium Received. You keep the premium as long as the stock stays below this.

Short Put: Strike − Premium Received. You keep the premium as long as the stock stays above this.

Why This Number Matters

It tells you whether the trade is realistic. A breakeven that needs a 15% move on a stock that averages 2% a month? Bad trade. A breakeven that's 3% away on a high-IV name with earnings next week? That's a different story. Always compare the breakeven distance to what the stock actually does.

Breakeven vs. Profitability Before Expiration

Here's what confuses people: breakeven only applies at expiration. Before expiration, your option still has time value. You can close it for a profit even if the stock hasn't hit breakeven. This calculator focuses on expiration math. If you want to model what happens before expiration, use the Options Profit Calculator.

• Buying options: Your max loss is the premium you paid (× 100 shares). The stock has to clear breakeven for you to make anything.
• Selling calls: Max profit is the premium you collected. Max loss is theoretically unlimited if the stock rips higher. That's why I always sell covered calls, never naked.
• Selling puts: Max profit is the premium. Max loss is if the stock goes to zero — that's (strike − premium) × 100. Sounds scary, but on a quality stock it's very unlikely.
• Distance check: Plug in the current stock price. The smaller the percentage distance to breakeven, the more likely the stock will get there. I want at least 3-5% cushion on my CSPs.