Answer first
What this calculator tells you
Calculate the profit, break-even price and return on a call or put option at expiration. See the payoff of an option at expiration before you decide whether the premium is worth paying. Formula: Call payoff = max(0, price − strike); put payoff = max(0, strike − price); profit = (payoff − premium) × 100 × contracts; break-even = strike ± premium. At the worked-example inputs, the profit or loss at expiration is $1,300. Holding every other input steady, moving share price at expiration from $88 to $132 moves the result from -$700 to $5,700.
Transparent method
The formula
See the payoff of an option at expiration before you decide whether the premium is worth paying.
Worked example
Example inputs
How to interpret the result
An option's payoff at expiration is simple: a call pays the amount the share price ends above the strike, a put pays the amount it ends below. You then subtract the premium you paid. A $100 call bought for $3.50 and finishing at $110 earns $6.50 a share, or $1,300 on two contracts. The break-even price is the strike plus the premium, $103.50, and the loss on a long option is capped at the premium.
At the worked-example inputs the profit or loss at expiration is $1,300. It rises with share price at expiration and number of contracts and falls as option type, strike price and premium paid per share increase.
Options are leveraged and a long option can expire worthless, losing the whole premium. This calculator shows the payoff at expiration only. It ignores commissions, taxes, early exercise and the value the option holds before expiry, and it is not a recommendation to trade.
Before you rely on it
What to check
Remember that a contract covers 100 shares and that fees and taxes come on top. The result shows the payoff at the expiration date only.
The common error
Where people go wrong with option profit calculator
Thinking the break-even is the strike price. The share must move past the strike by the full premium before the position makes money.
Sensitivity evidence
How share price at expiration changes the profit or loss at expiration
Holding every other input at the worked-example value, moving share price at expiration from $88 to $132 moves the profit or loss at expiration from -$700 to $5,700: a spread of $6,400, or 492% of the worked-example result.
| Share price at expiration | Profit or loss at expiration | Break-even share price | Return on premium paid |
|---|---|---|---|
| $88 | -$700 | $104 | -100.0% |
| $99 | -$700 | $104 | -100.0% |
| $110worked example | $1,300 | $104 | 185.7% |
| $121 | $3,500 | $104 | 500.0% |
| $132 | $5,700 | $104 | 814.3% |
Every input, tested
Which input moves the profit or loss at expiration most
Of the 5 inputs, option type moves the profit or loss at expiration most ($2,000 across the range tested) and premium paid per share moves it least ($140).
| Input | Tested from | To | Profit or loss at expiration at each end | Swing |
|---|---|---|---|---|
| Option type | Call | Put | $1,300 to -$700 | $2,000 (154%) |
| Strike price | $90 | $110 | $3,300 to -$700 | $4,000 (308%) |
| Share price at expiration | $99 | $121 | -$700 to $3,500 | $4,200 (323%) |
| Number of contracts | 1 | 3 | $650 to $1,950 | $1,300 (100%) |
| Premium paid per share | $3.15 | $3.85 | $1,370 to $1,230 | $140 (11%) |
Two variables at once
Profit or loss at expiration by share price at expiration and strike price
Across the grid the profit or loss at expiration runs from -$700 to $9,700. Moving share price at expiration from $88 to $132 shifts it by $6,400 at the middle column, and moving strike price from $80 to $120 shifts it by $6,000 at the middle row, so share price at expiration is the bigger lever here.
| Share price at expiration \ Strike price | $80 | $100 | $120 |
|---|---|---|---|
| $88 | $900 | -$700 | -$700 |
| $99 | $3,100 | -$700 | -$700 |
| $110 | $5,300 | $1,300 | -$700 |
| $121 | $7,500 | $3,500 | -$500 |
| $132 | $9,700 | $5,700 | $1,700 |
The highlighted cell is the worked example: $1,300.
Step by step
The worked example, input by input
| Input | Value used | What it means |
|---|---|---|
| Option type | Call | A call gains when the price rises above the strike. A put gains when it falls below. |
| Strike price | $100 | Enter the strike price used in this calculation. |
| Premium paid per share | $3.50 | Enter the premium paid per share used in this calculation. |
| Share price at expiration | $110 | Enter the share price at expiration used in this calculation. |
| Number of contracts | 2 | Each contract covers 100 shares. |
| Profit or loss at expiration | $1,300 | |
| Break-even share price | $104 | |
| Return on premium paid | 185.7% | |
Inputs, definitions and assumptions
Option type
A call gains when the price rises above the strike. A put gains when it falls below. The prefilled worked-example value is Call.
Strike price
Enter the strike price used in this calculation. The prefilled worked-example value is $100.
Premium paid per share
Enter the premium paid per share used in this calculation. The prefilled worked-example value is $3.50.
Share price at expiration
Enter the share price at expiration used in this calculation. The prefilled worked-example value is $110.
Number of contracts
Each contract covers 100 shares. The prefilled worked-example value is 2.
How to use this calculator
- 1Verify the inputs. Gather option type, strike price, premium paid per share, share price at expiration and number of contracts from your own documents; the prefilled values are examples.
- 2Save a baseline. The worked example puts the profit or loss at expiration at $1,300. Store your own version of it as Scenario A.
- 3Test one change. Start with option type, the input with the biggest effect here: switching option type changes the profit or loss at expiration: call gives $1,300; put gives -$700.
- 4Check the boundary. Read the interpretation boundary above before acting on the result.
People also ask
Frequently asked questions
How do you calculate option profit?
Call payoff = max(0, price − strike); put payoff = max(0, strike − price); profit = (payoff − premium) × 100 × contracts; break-even = strike ± premium. Enter strike price in dollars, premium paid per share in dollars and share price at expiration in dollars. At the worked-example inputs the profit or loss at expiration is $1,300.
What does the option profit result mean?
See the payoff of an option at expiration before you decide whether the premium is worth paying. At the worked-example inputs the profit or loss at expiration is $1,300. It rises with share price at expiration and number of contracts and falls as option type, strike price and premium paid per share increase.
How much does share price at expiration change the profit or loss at expiration?
Holding every other input at the worked-example value, moving share price at expiration from $88 to $132 moves the profit or loss at expiration from -$700 to $5,700, a spread of $6,400.
What are the limits of this option profit calculator?
Options are leveraged and a long option can expire worthless, losing the whole premium. This calculator shows the payoff at expiration only. It ignores commissions, taxes, early exercise and the value the option holds before expiry, and it is not a recommendation to trade. The tables on this page test share price at expiration only from $88 to $132; a value outside that range is not tabulated here.
Which input moves the profit or loss at expiration most in the option profit calculator?
Ranked by how far each moves the profit or loss at expiration across the range tested: option type ($2,000, 154%), strike price ($4,000, 308%), share price at expiration ($4,200, 323%) and number of contracts ($1,300, 100%).
How much does option type matter in the option profit calculator?
The worked example uses Call. With the other inputs left at the worked example, switching option type changes the profit or loss at expiration: call gives $1,300; put gives -$700.
How much does strike price matter in the option profit calculator?
The worked example uses $100. With the other inputs left at the worked example, moving strike price from $90 to $110 takes the profit or loss at expiration from $3,300 to -$700, a swing of 308% of the worked-example figure.
How much does premium paid per share matter in the option profit calculator?
The worked example uses $3.50. Holding every other input at its worked-example value, moving premium paid per share from $3.15 to $3.85 takes the profit or loss at expiration from $1,370 to $1,230, a swing of 11% of the worked-example figure.
How much does number of contracts matter in the option profit calculator?
The worked example uses 2. Holding every other input at its worked-example value, moving number of contracts from 1 to 3 takes the profit or loss at expiration from $650 to $1,950, a swing of 100% of the worked-example figure.
Which inputs change the break-even share price in the option profit calculator?
At the worked-example inputs it is $104. Option type takes it from $104 to $97, strike price takes it from $94 to $114 and premium paid per share takes it from $103 to $104.
Which inputs change the return on premium paid in the option profit calculator?
At the worked-example inputs it is 185.7%. Option type takes it from 185.7% to -100.0%, strike price takes it from 471.4% to -100.0%, premium paid per share takes it from 217.5% to 159.7% and share price at expiration takes it from -100.0% to 500.0%.
Sources and evidence
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