Choose live Schwab-backed contracts or enter values manually.
Option legs
Shared live selection with manual fallback.
Long leg · long 1×
Short leg · short 1×
Payoff summary
Defined-risk expiration values.
Net debit
$400.00
Maximum profit
$600.00
Maximum loss
$400.00
Break-even
$104.00
Risk / reward
$1.50
OPTIONS TRADE
MANUAL long call 100 6 / short call 110 2
Expiration
StrategyDEBIT SPREAD
Contracts1 CONTRACT
Net debit400▲
MAX PROFIT600▲
MAX LOSS400▲
OPTIONS TRADE
MANUAL long call 100 6 / short call 110 2
Expiration
StrategyDEBIT SPREAD
Contracts1 CONTRACT
Net debit400▲
MAX PROFIT600▲
MAX LOSS400▲
Methodology and risk
Debit spreads pay a net debit; credit spreads receive a net credit. Strike order must form a defined-risk vertical spread. Values exclude commissions, assignment, and early-exercise risk.
How this calculator works
A debit spread combines a long option with a farther strike short option to reduce cost in exchange for capped upside.
How to use it
Enter the long and short strikes in payoff order and the net debit paid. Compare the expected underlying target with the short strike because that short option caps the spread's value beyond its strike.
Formula, payoff, and assumptions
Maximum loss is net debit; maximum profit is strike width minus debit; break-even adjusts the long strike by the debit.
The result assumes a defined-risk vertical with one long and one short option. The short leg reduces entry cost but caps the payoff at expiration.
Practical example
A $10-wide spread bought for $4 has a $400 maximum loss and $600 maximum profit per contract.
Reading this result
The debit is the maximum expiration loss, while the strike width limits the payout. Consider whether the capped range fits the directional move you are expecting rather than looking at the maximum-profit number alone.
Common planning mistake
Do not ignore the short leg when reviewing an early exit. Before expiration, both legs retain time value, so a closing price can differ from the simple expiration payoff.
Risk and limitations
The full debit is at risk, and the short option limits gains if the underlying moves beyond its strike.
