# Option Payoff Calculator > Free option payoff calculator. Choose a call or put, long or short, enter strike and premium, and see profit or loss at expiry, break even and max risk. Source: https://learn.tradelabsai.com/tools/option-payoff-calculator/ Track: Calculators · Level: Beginner · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Option Payoff Calculator", https://learn.tradelabsai.com/tools/option-payoff-calculator/ An option's value at expiry depends only on where the underlying price ends up relative to the strike. This calculator shows the profit or loss at expiry for a single option position, long or short, call or put, after the premium paid or received. It gives the result at a price you choose, the break even price, the maximum profit and the maximum loss, plus a table of outcomes at prices from 30% below to 30% above the strike. It is a quick way to understand the risk of a trade before placing it. ## Calculator *Interactive calculator: use it at https://learn.tradelabsai.com/tools/option-payoff-calculator/* ## How it works ``` Call value at expiry = max(Price - Strike, 0) Put value at expiry = max(Strike - Price, 0) Long P&L = (Value at expiry - Premium) × Shares per contract × Contracts Short P&L = (Premium - Value at expiry) × Shares per contract × Contracts Break even: call = Strike + Premium, put = Strike - Premium ``` Commissions and early exercise are ignored. Before expiry, an option also has time value; use the [Black-Scholes and Greeks Calculator](https://learn.tradelabsai.com/tools/black-scholes-calculator/) to estimate it. See [Option Payoff Diagrams](https://learn.tradelabsai.com/options/option-payoff-diagrams/). **Example: Buying a call** A trader buys one call with a $100 strike for $5 per share, paying $500 for the contract. If the stock is at $115 at expiry, the call is worth $15 per share, $1,500, for a profit of $1,000. The break even price is $105. Below $100, the call expires worthless and the trader loses the full $500, the maximum loss. Above $105, profits grow with no fixed cap. A trader who sold the same call would have the exact opposite outcome: a maximum gain of $500 and risk with no upper limit above the strike. See [Long Call](https://learn.tradelabsai.com/options/long-call/) and [Short Call](https://learn.tradelabsai.com/options/short-call/). ## The four basic positions | Position | Max profit | Max loss | Break even | Outlook | |---|---|---|---|---| | Long call | No cap | Premium paid | Strike + premium | Bullish. See [Long Call](https://learn.tradelabsai.com/options/long-call/) | | Short call | Premium received | No cap | Strike + premium | Neutral to bearish. See [Short Call](https://learn.tradelabsai.com/options/short-call/) | | Long put | Strike minus premium | Premium paid | Strike minus premium | Bearish. See [Long Put](https://learn.tradelabsai.com/options/long-put/) | | Short put | Premium received | Strike minus premium | Strike minus premium | Neutral to bullish. See [Short Put](https://learn.tradelabsai.com/options/short-put/) | Multiply the per share figures by 100 for a standard US equity option contract. ## Beyond single options Spreads combine options to shape the payoff: a bull call spread caps both profit and loss, an iron condor profits in a range, a straddle profits from big moves. Building them leg by leg helps you understand each one. See [Vertical Spreads](https://learn.tradelabsai.com/options/vertical-spreads/), [Iron Condor](https://learn.tradelabsai.com/options/iron-condor/) and [Straddle](https://learn.tradelabsai.com/options/straddle/). ## Things to remember 1. **Short options can lose far more** than the premium collected. 2. **Probability matters:** a cheap far out of the money option has a low chance of paying off. See [Moneyness: ITM, ATM and OTM](https://learn.tradelabsai.com/options/moneyness-itm-atm-and-otm/). 3. **Expiry is not the only outcome:** most options are closed before expiry at their market value. See [Intrinsic and Extrinsic Value](https://learn.tradelabsai.com/options/intrinsic-and-extrinsic-value/). 4. **Assignment risk** applies to short American style options. See [Exercise and Assignment](https://learn.tradelabsai.com/options/exercise-and-assignment/). 5. **Volatility changes** affect option prices before expiry. See [Volatility Crush and Expansion](https://learn.tradelabsai.com/volatility/volatility-crush-and-expansion/). ## Trying scenarios Switch between long and short, and between calls and puts, keeping the same strike and premium. The table below the results shows how each position behaves as the price moves 30% either way. Notice that long options have a fixed worst case, while short calls have no ceiling on losses. Seeing the four shapes side by side is one of the fastest ways to learn options. ## Frequently asked questions ### How do I calculate option profit at expiry? Find the option's value at expiry (how far it is in the money), subtract the premium paid for a long position or subtract it from the premium received for a short position, then multiply by the contract size. ### What is the break even for a call option? The strike price plus the premium paid per share. ### What is the maximum loss on a long option? The premium paid, if the option expires worthless. Next, value options before expiry with the [Black-Scholes and Greeks Calculator](https://learn.tradelabsai.com/tools/black-scholes-calculator/). ## Continue learning - Next lesson: [Black-Scholes and Greeks Calculator](https://learn.tradelabsai.com/tools/black-scholes-calculator/) - Previous lesson: [Bond Price, Duration and DV01 Calculator](https://learn.tradelabsai.com/tools/bond-calculator/) - Related: [Bond Price, Duration and DV01 Calculator](https://learn.tradelabsai.com/tools/bond-calculator/): Free bond calculator. Enter face value, coupon, yield to maturity, years and payment frequency to get the bond price, current yield, duration and DV01. - Related: [Option Payoff Diagrams](https://learn.tradelabsai.com/options/option-payoff-diagrams/): Payoff diagrams show an option position's profit or loss at expiration across prices. Learn to read and draw them for single options and multi leg strategies. - Related: [How Options Work](https://learn.tradelabsai.com/options/how-options-work/): Options give the right, but not the obligation, to buy or sell an asset at a set price by a set date. Learn how options work, why traders use them and the key terms. - Related: [Calls and Puts](https://learn.tradelabsai.com/options/calls-and-puts/): A call gives the right to buy and a put gives the right to sell at a set price. Learn how calls and puts work, how they profit and how buyers and sellers differ. - Related: [Long Call](https://learn.tradelabsai.com/options/long-call/): A long call is buying a call option to profit from a rise with limited risk. Learn the payoff, break even, how to choose strike and expiry, and common pitfalls. - Related: [Short Put](https://learn.tradelabsai.com/options/short-put/): A short put sells a put option to collect premium, profiting if the price stays above the strike. Learn the payoff, risks, margin and how it can buy stock.