Options Breakeven Calculator
Find the breakeven price and profit or loss for any call or put option position in seconds.
How the option breakeven is calculated
The breakeven is the spot price at expiry where your option position neither makes nor loses money — the underlying must move far enough to recover the premium you paid (or to keep the premium you received).
Things to keep in mind when trading options
Buying an option caps your loss at the premium but most options expire worthless. Selling earns the premium upfront but exposes you to large losses and margin requirements.
Option premiums lose value as expiry approaches, especially in the last week. The underlying must move quickly enough to beat this decay for a buyer to profit.
This tool shows gross P/L. Real trades also incur brokerage, STT, exchange and GST charges that shift your actual breakeven slightly higher.
Frequently asked questions
What is the breakeven price of an option?
It is the underlying spot price at expiry where the trade results in zero profit and zero loss. For a call it equals the strike plus the premium; for a put it equals the strike minus the premium. The underlying must cross this level for a buyer to start earning.
How is profit or loss on an option calculated?
P/L = (intrinsic value at expiry − premium) × quantity. Intrinsic value of a call is max(spot − strike, 0) and of a put is max(strike − spot, 0). For option sellers the sign is reversed because they receive the premium and pay out the intrinsic value.
What is the maximum loss when buying an option?
When you buy a call or put, the most you can lose is the total premium you paid (premium × quantity). Even if the underlying moves sharply against you, the option simply expires worthless and you lose only the premium.
Why is selling an option riskier than buying one?
An option seller receives a fixed premium as their maximum profit but takes on large risk. A short call has theoretically unlimited loss if the stock keeps rising, and a short put can lose heavily if the stock crashes toward zero. Sellers also need margin.
Does this calculator include brokerage and taxes?
No. The breakeven and P/L shown are gross figures based purely on strike, premium and quantity. In practice brokerage, STT, exchange transaction charges and GST raise your effective breakeven a little, so leave a small buffer.