Four-leg payoff at expiration
Iron Condor Calculator
Calculate profit or loss, two break-even prices, maximum profit, maximum loss and return on risk for a short iron condor or a long reverse iron condor.
Iron condor results
Expiration-only model: this calculator does not estimate the four-leg position before expiration, assignment timing, implied volatility, Greeks, dividends or early exercise.
| Underlying at expiration | Put-spread payoff | Call-spread payoff | Gross position P/L | Net P/L after fees |
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How the iron condor calculation works
An iron condor combines a put spread and a call spread with the same expiration. The four strikes must be ordered K1 < K2 < K3 < K4. A short iron condor buys the outer options and sells the inner options for a net credit. A long or reverse iron condor sells the outer options and buys the inner options for a net debit.
Entry amount per share: K2 put premium + K3 call premium − K1 put premium − K4 call premium.
Short iron condor maximum profit: entry credit × shares − fees.
Short side losses: (each wing width − credit) × shares + fees.
Long iron condor maximum loss: entry debit × shares + fees.
Long side profits: (each wing width − debit) × shares − fees.
Fees are allocated across all covered shares when calculating the two break-even prices. For a short iron condor, lower break-even is K2 minus net credit per share and upper break-even is K3 plus net credit per share. For a long iron condor, lower break-even is K2 minus total debit per share and upper break-even is K3 plus total debit per share.
Verified short iron condor example
Buy the 90 put for $1, sell the 95 put for $2.50, sell the 105 call for $2.40 and buy the 110 call for $0.90. One 100-share iron condor opens for a $300 gross credit. With $4 in total fees, maximum profit is $296, maximum loss is $204, lower break-even is $92.04 and upper break-even is $107.96. At an expiration price of $100, every option expires without intrinsic value and the net profit is $296.
Verified long or reverse iron condor example
Sell the 90 put for $1, buy the 95 put for $3, buy the 105 call for $3 and sell the 110 call for $1. The gross debit is $400. With $4 in fees, maximum loss is $404, each extreme-side maximum profit is $96, and break-even prices are $90.96 and $109.04. An expiration price of $85 produces the left-side net profit of $96.
Unequal wings and maximum risk
The put and call wing widths do not have to be equal. The calculator reports the outcome at each extreme separately. For a short iron condor, maximum loss is the larger of the two side losses. For a long iron condor, maximum profit is the larger of the two side profits. The validation requires the entry credit or debit to be smaller than both wing widths so the payoff retains the expected limited-risk shape on both sides.
Limits and assumptions
The model assumes all four options share the same underlying, expiration and multiplier and remain open through expiration. Premiums are entered per share. It excludes bid-ask spreads, slippage, taxes, changing margin requirements, dividends, interest, exercise and assignment before expiration, pin risk and broker-specific treatment. The simple annualized return multiplies the one-period return by 365 divided by days; it is not a forecast.
Four-leg option strategies can produce rapid losses and may have complex assignment or buying-power consequences. Confirm contract specifications, fees and expiration procedures with the broker. This educational calculator is not investment, tax or legal advice.
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