Iron Condor Calculator
Calculate max profit, max loss, breakeven points, and risk/reward ratio for an iron condor options strategy. Enter your four strikes and the credit received from each spread to see the full risk profile at expiration.
Enter all four strikes in ascending order and the net credit received from each vertical spread.
Enter your iron condor strikes and credits, then click Calculate Iron Condor to see max profit, max loss, breakevens, and risk/reward.
For educational purposes only. Not financial advice. Read full disclaimer
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Iron Condor Formulas
Net Credit = Put Spread Credit + Call Spread Credit
Width = max(Short Put - Long Put, Long Call - Short Call)
Max Profit = Net Credit x 100 x Contracts
Max Loss = (Width - Net Credit) x 100 x Contracts
Breakeven Lower = Short Put Strike - Net Credit
Breakeven Upper = Short Call Strike + Net Credit
Risk/Reward = Max Loss / Max Profit
Return on Risk = (Max Profit / Max Loss) x 100
Worked Examples
Example 1: SPY Iron Condor with Equal-Width Spreads
SPY is trading at $450. You sell the 440/435 put spread for $1.20 credit and sell the 460/465 call spread for $0.80 credit. 1 contract.
- Net Credit = $1.20 + $0.80 = $2.00 per share ($200 per contract)
- Spread Width = max(440 - 435, 465 - 460) = $5.00
- Max Profit = $2.00 x 100 = $200
- Max Loss = ($5.00 - $2.00) x 100 = $300
- Breakeven Lower = 440 - 2.00 = $438.00
- Breakeven Upper = 460 + 2.00 = $462.00
- Return on Risk = $200 / $300 x 100 = 66.7%
Example 2: QQQ Iron Condor with 10 Contracts
QQQ is trading at $380. You sell the 365/360 put spread for $0.90 and the 395/400 call spread for $0.60. 10 contracts.
- Net Credit = $0.90 + $0.60 = $1.50 per share ($1,500 total for 10 contracts)
- Spread Width = max(365 - 360, 400 - 395) = $5.00
- Max Profit = $1.50 x 100 x 10 = $1,500
- Max Loss = ($5.00 - $1.50) x 100 x 10 = $3,500
- Breakeven Lower = 365 - 1.50 = $363.50
- Breakeven Upper = 395 + 1.50 = $396.50
- Return on Risk = $1,500 / $3,500 x 100 = 42.9%
How to Use This Calculator
- Enter the long put strike — the lowest strike in your iron condor, providing downside protection.
- Enter the short put strike — the put you sell, which defines the lower boundary of your profit zone.
- Enter the short call strike — the call you sell, which defines the upper boundary of your profit zone.
- Enter the long call strike — the highest strike, providing upside protection and capping your max loss.
- Enter the credit for each spread — the net credit received per share for the put spread and call spread separately.
- Set the number of contracts — each contract covers 100 shares. The calculator scales all dollar amounts accordingly.
- Click Calculate — review max profit, max loss, both breakeven points, and the return on risk percentage.
Frequently Asked Questions
- What is an iron condor?
- An iron condor is a neutral options strategy that combines a bull put spread and a bear call spread. You sell an out-of-the-money put and call while buying further out-of-the-money options on both sides for protection. The goal is for the underlying to stay between the two short strikes through expiration so you keep the entire net credit.
- When should you trade an iron condor?
- Iron condors work best in low-volatility, range-bound markets where you expect the underlying to stay within a defined price range through expiration. Many traders enter iron condors when implied volatility is elevated relative to historical volatility, since the inflated premiums provide a wider profit zone and higher credit.
- How is max loss calculated on an iron condor?
- Max loss equals the width of the wider spread minus the net credit received, multiplied by 100 shares per contract. For example, if both spreads are $5 wide and you collect $2.00 in net credit, your max loss is ($5 - $2) x 100 = $300 per contract. This occurs if the underlying moves past either long strike at expiration.
- Can you lose more than the max loss on an iron condor?
- At expiration, your loss is capped at the calculated max loss because the long options limit your risk on each side. However, before expiration, early assignment on short legs (especially around ex-dividend dates) can temporarily create larger exposure. Closing positions before expiration eliminates early assignment risk.
- What is a good return on risk for an iron condor?
- Many traders target a return on risk between 20% and 35%, which corresponds to collecting roughly one-third of the spread width as credit. A higher return on risk means narrower wings or tighter short strikes, which increases the probability of being tested. The ideal balance depends on your win rate and risk tolerance.