Vertical Spread Breakeven Calculator
Find the breakeven, max profit and max loss of any vertical option spread — bull call, bear put, bull put or bear call — from its strikes and net premium.
How it works
Debit call BE = lower strike + debit · Debit put BE = higher strike − debit · Credit put BE = higher strike − credit · Credit call BE = lower strike + credit · Debit width = strike gap
A vertical spread buys one option and sells another at a different strike in the same expiry, capping both profit and loss. Debit spreads pay a premium up front and profit as the position moves in your favour; credit spreads collect a premium and profit if the underlying stays away from the short strike. The maximum risk plus maximum reward always equals the strike width, so the two are directly traded off against each other.
Worked example
A bull call spread buying the $100 call and selling the $105 call for a $2 net debit breaks even at $102. The most you can make is the $5 width minus the $2 debit = $3 per share; the most you can lose is the $2 debit — a 1.5× reward-to-risk.
Frequently asked questions
How do I read a credit spread’s breakeven?
For a bull put (credit) spread you keep the full credit as long as the stock stays above the breakeven, which is the higher (short) strike minus the credit received. Below that, losses grow until you hit the lower strike.
Why does max profit plus max loss equal the strike width?
Both legs settle against the same underlying, so the payoff is bounded by the gap between strikes. Whatever you don’t risk you can’t win, and vice versa — the width is fixed, and the premium splits it between the two parties.
Does this account for the 100-share multiplier?
The figures are per share. Multiply by 100 for a standard single-contract spread — a $3 max profit per share is $300 per spread.
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Educational estimate using a simplified Black–Scholes / options model — no dividends, no early-exercise, no fees or slippage. Options are high-risk. Not investment advice.