Two-leg payoff at expiration
Option Credit Spread Calculator
Calculate profit or loss, net credit, break-even, maximum profit, maximum loss and return on risk for a bull put or bear call credit spread.
Credit spread results
Expiration-only model: this calculator does not estimate the spread value before expiration, assignment timing, volatility, Greeks or early exercise.
| Underlying at expiration | Short-leg payoff | Long-leg payoff | Gross spread P/L | Net P/L after fees |
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How the option credit spread calculation works
A credit spread sells one option and buys another option of the same type with the same expiration. The premium received on the short leg must exceed the premium paid on the protective leg. The bought option caps the loss.
Gross credit per share: sold premium − bought premium.
Maximum profit: gross credit × shares − fees.
Maximum loss: (strike width − gross credit) × shares + fees.
Bull put break-even: sold put strike − net credit per share.
Bear call break-even: sold call strike + net credit per share.
For a bull put spread, the short put has the higher strike and the long put has the lower strike. For a bear call spread, the short call has the lower strike and the long call has the higher strike. Net credit per share subtracts fees allocated across all covered shares.
Verified bull put example
Sell two 100-strike puts for $4 per share and buy two 95-strike puts for $2 per share, with 100 shares per contract and $3 of total fees. The gross credit is $400, net credit is $397, maximum profit is $397, maximum loss is $603 and break-even is $98.015. At an expiration price of $102, both puts expire without intrinsic value and net profit is $397.
Verified bear call example
Sell one 100-strike call for $5 and buy one 110-strike call for $2, with a 100-share multiplier and $2 of fees. Gross credit is $300, maximum profit is $298, maximum loss is $702 and break-even is $102.98. At an expiration price of $105, the short call is worth $5 per share, the long call expires without value and the net result is a $202 loss.
Limits and assumptions
The model assumes both legs have the same expiration and multiplier, remain open through expiration and settle from intrinsic value. Premiums are entered per share. It excludes bid-ask spreads, slippage, taxes, margin changes, dividends, exercise and assignment before expiration, pin risk, interest, volatility and broker-specific rules. The simple annualized return multiplies one-period return by 365 divided by days; it is not a forecast and assumes the same risk could be repeated continuously.
Options can create rapid losses. Confirm contract specifications, buying-power requirements, expiration procedures and fees with the broker. This educational calculator is not investment, tax or legal advice.
Related calculators
- Options Profit Calculator — model one long or short call or put.
- Covered Call Calculator — combine shares with a short call.
- Cash-Secured Put Calculator — estimate collateral, assignment and return.
- Black-Scholes Calculator — estimate European option value and Greeks before expiration.