Options Breakeven Calculator
Buying an option? Don't forget the premium. Find out the EXACT price the stock needs to hit for you to make money.
The "Hidden" Cost of Options
New traders often make a fatal mistake: They think if they buy a $100 Call, they make money as soon as the stock goes above $100. Wrong.
You paid a "Premium" to buy that option. Let's say you paid $5.00. That means you start the trade in a $5.00 hole. The stock needs to go to $105 just for you to break even. Anything below $105 is a loss, even if the stock is technically "up."
How It Works
- Call Options (Bullish): You want the stock to go UP.
Breakeven = Strike Price + Premium - Put Options (Bearish): You want the stock to go DOWN.
Breakeven = Strike Price - Premium
Why Breakeven Matters at Expiration
This calculator shows you the breakeven at expiration. Before expiration, the option price is affected by "Greeks" (Time Decay, Volatility, etc.). But knowing your expiration breakeven gives you a hard target. If you don't think the stock can realistically reach that number, don't buy the option.
Common Questions
Does this include commissions?
No. Most brokers charge a small fee per contract (e.g., $0.65). You should mentally add that to your premium if you want to be super precise, but it's usually negligible for larger trades.
What happens if I sell before expiration?
Then the breakeven is different because the option still has "Time Value." This calculator gives you the "hard" breakeven for holding until the end.
Why is Put breakeven lower?
Because with a Put, you make money as the price drops. So you take the Strike Price and subtract the cost (premium) you paid to find the point where profit begins.