Options Breakeven Calculator

About this calculator

The breakeven price of an option at expiry is the underlying stock price at which the position exactly recovers the premium paid, with no profit or loss. For a long call, breakeven equals the strike price plus the premium paid, because the stock must rise past the strike by at least the premium amount before the position turns profitable. For a long put, breakeven equals the strike price minus the premium paid, since the stock must fall below the strike by at least the premium before the put generates a profit.

Options traders calculate breakeven before entering a position because it translates an abstract premium cost into a concrete price target the underlying stock actually has to reach — it's the number used to judge whether a bullish or bearish thesis needs a “big move” or just a modest one to pay off, and it's distinct from (and usually less favorable than) the strike price alone.

This calculator takes the strike price and premium paid for a call or a put and returns the exact underlying price at which the position starts making money at expiration.