Options Breakeven Calculator
Calculate the exact underlying price needed at expiry to break even on Calls and Puts.
How the Calculation Works
Read parameters and compute total exposure: multiply order quantity by contract unit multiplier.
Evaluate terminal return at the selected target price using strict financial mathematical boundary logic.
Deduct upfront capital commitments, taxes, or net debits to produce final net profit or loss realization.
Calculation Formula
Example Calculation
Purchasing a 24,200 Strike Put at ₹140 premium.
The underlying must fall below ₹24,060 by expiry for the trade to generate net profit.
Assumptions & Parameters
- Breakeven represents expiration parity and excludes pre-expiry mark-to-market fluctuations.
Frequently Asked Questions
How is call breakeven calculated?
Call breakeven is calculated as Strike Price plus Premium Paid. The underlying must expire above this level for profit.
How is put breakeven calculated?
Put breakeven is calculated as Strike Price minus Premium Paid. The underlying must expire below this level for profit.
Why is breakeven different from the strike price?
Because you paid an upfront premium to buy the contract, the asset must move past the strike by at least the premium amount to recover that cost.
Does breakeven include brokerage fees?
This formula computes pure derivatives breakeven. To cover broker fees, add estimated round-trip charges divided by total units.
Is breakeven relevant for option sellers?
Yes. For option sellers, the breakeven is the boundary beyond which their initial premium credit is fully wiped out by losses.
Does the breakeven change if I exit before expiry?
Yes. Prior to expiration, your exit depends on prevailing market premium rather than the expiry intrinsic formula.