How it works
An option’s expiration intrinsic value is the favorable difference between underlying price and strike, bounded below by zero. Calls benefit from higher underlying prices; puts benefit from lower prices.
The formula
Keep currency, units and time periods consistent. Percentage inputs use percentage points (enter 5 for 5%). Results are rounded only for display; tiny nonzero values may use scientific notation. Undefined ratios are shown as unavailable.
Option: Long Call; Strike price: $100; Premium: $5.00 per share; Contracts: 1; Multiplier: 100; Underlying at expiration: $112; Intrinsic value: $12.00 per share; Net expiration P&L before commission: $700; Break-even price: $105.
Calculation method
A long option pays premium and receives intrinsic value at expiration. A short option receives premium and owes the intrinsic payoff. Quantity, editable contract multiplier and entered commissions scale the monetary result.
Interpretation
Break-even before commissions compares strike and premium. The fee-aware threshold also accounts for costs per underlying unit. A long put can have no non-negative break-even when premium and costs exceed its maximum intrinsic value.
Limitations
The payoff table values the position only at expiration. It does not price an option before expiration or model volatility, time decay, exercise, assignment or tax. Short-call losses are theoretically unlimited.
Method and reference sources
Method and content checked 2026-09-20. These sources provide background, not endorsement or professional certification. The formula and limitations above define this calculator.
- Options Industry Council — Long callExpiration payoff, premium and break-even context; select the appropriate option type and position side in the calculator.
Frequently asked questions
Does this show the option value before expiration?
No. It calculates expiration payoff after premium and entered costs. Before expiration, time value and volatility can make market prices differ substantially.
What is a worked example for Options Profit?
Option: Long Call; Strike price: $100; Premium: $5.00 per share; Contracts: 1; Multiplier: 100; Underlying at expiration: $112; Intrinsic value: $12.00 per share; Net expiration P&L before commission: $700; Break-even price: $105.