Option Profit Calculator
This calculator models profit, loss and key metrics for common option strategies including single-leg (long call, long put) and multi-leg (vertical spreads, iron condor, custom). Inputs are per-share option premiums and strikes; contract size is applied to convert to USD values.
Results show net premium, breakeven, maximum theoretical loss and profit at a user-selected target underlying price. Use the transaction cost and contract size fields to reflect real trading costs and standard option contract specifications.
Buy a single call option. Outputs include total premium paid, breakeven, max loss, intrinsic value and profit at a target underlying price.
Inputs
Advanced inputs
Long call inputs
Long put inputs
Call vertical spread inputs
Iron condor inputs
Custom multi-leg inputs
Results
Total premium paid (USD)
$251.00
Breakeven (USD)
$102.50
Max loss (USD)
$251.00
Intrinsic value at target (USD)
$1,000.00
Profit at target (USD)
$749.00
| Output | Value | Unit |
|---|---|---|
| Total premium paid (USD) | $251.00 | USD |
| Breakeven (USD) | $102.50 | USD |
| Max loss (USD) | $251.00 | USD |
| Intrinsic value at target (USD) | $1,000.00 | USD |
| Profit at target (USD) | $749.00 | USD |
Visualization
Methodology
Calculations use deterministic algebraic formulas applied to user inputs. We compute per-share intrinsic values and scale by number of contracts and contract size to report USD figures.
This tool is for scenario analysis and does not execute trades. It does not perform live mark-to-market or margin calculations beyond simple theoretical maxima and target-price payoffs.
Accuracy practices: inputs are treated as exact numeric values. For production use, round-trip testing and numerical validation should follow quality management guidelines such as ISO 9001 and algorithmic development controls recommended in IEEE software engineering standards. For security and data handling, follow NIST cybersecurity guidance.
Worked examples
Example: Buy 1 call at 2.50 premium with 100 contract size, strike 100. Premium total = 2.50 * 1 * 100 = $250. Breakeven = 102.50.
Example: Bull call spread long 95 (6.00) short 105 (2.00) with 1 contract: net premium = (6.00 - 2.00) * 100 = $400 gross. Max profit = (105 - 95) * 100 - 400 = $600.
Further resources
Expert Q&A
Does this calculator account for assignment and margin?
No. This tool provides theoretical P&L and does not simulate exercise/assignment flows or broker margin rules. Consult your broker for margin and assignment mechanics.
Are Greeks or time decay included?
Not directly. Implied volatility and days to expiration are available as inputs for advanced modeling, but Greeks (delta/theta/vega) are not computed by default in this version. Use dedicated Greeks models for sensitivity analysis.
How accurate are the payoff numbers?
Payoffs are exact algebraic calculations based on inputs. Real-world execution, slippage, fills, early exercise, dividends, and borrow/interest costs can alter outcomes. See the accuracy and limits section below for standards and calibration notes.
Sources & citations
- NIST — Cybersecurity & best practices — https://www.nist.gov
- ISO — Quality management standards — https://www.iso.org
- IEEE — Software engineering and algorithm development guidance — https://www.ieee.org
- OSHA — Workplace safety and operational controls (for operational risk programs) — https://www.osha.gov