Options Payoff Calculator
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Add long or short calls, puts and stock to build any options strategy, then see the payoff-at-expiry diagram along with the maximum profit, maximum loss and break-even prices. You can download the payoff chart as a PNG. Everything is calculated on your device.
What a payoff diagram shows
An options payoff diagram plots the profit or loss of a position at expiry against the price of the underlying. The horizontal axis is the spot price on expiry day and the vertical axis is the net dollar result, after accounting for the premiums paid or received. Because option payoffs are piecewise linear, the curve is a series of straight segments that bend at each strike.
Reading the diagram tells you at a glance where a strategy makes money, where it loses, how much is at risk and where it breaks even. It is the single most useful picture for understanding any options position before you place it.
How each leg is valued
For a given expiry spot price, a long call pays the greater of zero or spot minus strike, then subtracts the premium; a long put pays the greater of zero or strike minus spot, minus the premium. Short positions simply flip the sign, so a short call collects the premium and pays out the intrinsic value. A stock leg is valued as spot minus your entry price for a long, or entry minus spot for a short.
Each leg is multiplied by its quantity, and the total payoff is the sum of all legs. That is exactly how the calculator builds the curve you see, sampling many spot prices across a sensible range around your strikes.
- Long call: max(spot - strike, 0) - premium, times quantity
- Long put: max(strike - spot, 0) - premium, times quantity
- Short option: the same intrinsic value with the sign reversed
- Stock: spot minus entry (long) or entry minus spot (short)
Max profit, max loss and break-even
Maximum profit and maximum loss are found by evaluating the payoff at every vertex of the curve, that is at zero, at each strike and across the visible range. When the position has an uncapped payoff, such as a naked long call to the upside or a naked short call, the tool reports the result as unlimited by checking the slope of the payoff as spot heads toward infinity.
Break-even points are the spot prices where the total payoff equals zero. Some strategies have one break-even, others such as a long straddle have two, and the calculator lists each one it finds within the plotted range.
Using it well
Start with a single leg to see the classic call or put hockey-stick, then add legs to build spreads and combinations. Watch how selling a further option caps your profit but reduces cost, or how adding stock turns a call into a covered position. Comparing the max loss against the max profit gives you the risk-reward of the whole structure at a glance.
Remember the diagram is the payoff at expiry only. Before expiry, time value and volatility mean the position is worth something different from these straight lines, and early assignment can change the outcome for American-style options. Use the chart for planning the shape of your risk, not as a live mark-to-market.
Frequently asked questions
Does the premium include commissions?
No. Enter the net premium per contract for each leg. If you want to include trading fees, fold them into the premium yourself before entering it.
What quantity should I enter?
Enter the number of contracts or shares for that leg. The payoff scales linearly with quantity, so two contracts double the profit and loss of one.
Why does it say max profit or loss is unlimited?
When the net position still gains or loses value as the underlying rises without bound, such as a bare long or short call, the payoff has no cap on the upside, so the tool labels it unlimited rather than a finite number.
How is the price range for the chart chosen?
It is centred on your strikes and stock entry prices, spanning from about 60 percent of the lowest reference up to about 140 percent of the highest, so the interesting part of the curve is always visible.
Can I save the diagram?
Yes. A download button appears under the results that saves the current payoff chart as a PNG image, generated directly from the canvas in your browser.
Does this account for dividends or interest?
No. It is a pure expiry payoff based on strikes and premiums. For the time value of options before expiry, use a pricing model such as Black-Scholes instead.
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