Free Credit Spread Calculator — Bull Put & Bear Call P&L Tool
Calculate credit spread max profit, max loss, breakeven, and Greeks instantly. Analyze bull put spreads and bear call spreads with real-time market data for 5,500+ tickers.
What is Credit Spread Calculator?
Credit Spread Calculator is a tool that computes the maximum profit, maximum loss, breakeven price, and position Greeks for credit spread strategies including bull put spreads and bear call spreads.
Use a credit spread calculator before every trade to confirm risk/reward and ensure the spread fits your account size and risk tolerance.
Credit Spread at a Glance
| Strategy Type | Defined-risk credit strategy |
| Legs | 2 (sell near-the-money, buy further OTM) |
| Direction | Bull put spread (bullish) or Bear call spread (bearish) |
| Max Profit | Net credit received |
| Max Loss | Strike width minus net credit |
| Breakeven | Short strike +/- credit (direction-dependent) |
| Best IV Environment | High IV (IV Rank > 50) |
| Ideal DTE | 30-45 days to expiration |
Interactive Credit Spread Payoff Calculator
Use the interactive diagram below to visualize profit and loss at every price point. The default view shows a bull put spread. You can also model a bear call spread by toggling the strategy type within the simulator.
Interactive Payoff Diagram
How to Calculate Credit Spread P&L
Credit Spread Structure
A credit spread has 2 legs:
- Leg 1 (Short): Sell an option closer to the money (collects premium)
- Leg 2 (Long): Buy an option further OTM (caps risk)
Maximum Profit Formula
Formula
Max Profit = Net Credit Received × 100
Example Calculation
Setup: SPY $440/$435 Bull Put Spread
- Sell $440 put @ $3.20
- Buy $435 put @ $1.70
Net Credit: $3.20 - $1.70 = $1.50 per share
Max Profit = $1.50 × 100 = $150 per contract
Occurs when: SPY stays above $440 at expiration
Maximum Loss Formula
Formula
Max Loss = (Strike Width - Net Credit) × 100
Using Same Example
Strike Width: $440 - $435 = $5
Net Credit: $1.50
Calculation: ($5.00 - $1.50) × 100
Max Loss = $350 per contract
Occurs when: SPY falls below $435 at expiration
Breakeven Calculation
Formulas
Bull Put Spread BE = Short Put Strike - Net Credit
Bear Call Spread BE = Short Call Strike + Net Credit
Using Same Example (Bull Put)
Short put strike: $440
Net credit: $1.50
Breakeven = $440 - $1.50 = $438.50
Risk/Reward Ratio: $350 risk / $150 reward = 2.33:1
Real Credit Spread Calculator Example
SPY $440/$435 Bull Put Spread
Market Conditions
Stock Price: SPY = $445.00
IV Rank: 55 (elevated)
Days to Expiration: 35 days
Trade Setup
- Sell $440 put: $3.20 (short strike, ~30 delta)
- Buy $435 put: $1.70 (long strike, ~20 delta)
- Net Credit: $1.50 per share = $150 income
Calculator Results
| Max Profit | $150 (credit received) |
| Max Loss | $350 ($5 width - $1.50 credit) |
| Breakeven | $438.50 ($440 - $1.50) |
| Probability of Profit | ~70% (based on short delta) |
| ROI on Capital at Risk | 42.9% ($150 / $350) |
| Cushion to Short Strike | $5.00 (1.1% below current price) |
Position Greeks
| Greek | Value | Impact |
|---|---|---|
| Delta | +0.10 | Slightly bullish; gains $10 if stock rises $1 |
| Theta | +$4/day | Earns $4 daily from time decay |
| Vega | -$8 | Loses $8 per 1% IV increase |
| Gamma | -0.006 | Low gamma risk away from short strike |
Bull Put Spread vs Bear Call Spread
Both are credit spreads with defined risk. Your market outlook determines which to use:
| Attribute | Bull Put Spread | Bear Call Spread |
|---|---|---|
| Directional Bias | Bullish / Neutral | Bearish / Neutral |
| Options Used | Puts (sell higher, buy lower) | Calls (sell lower, buy higher) |
| Profits When | Stock stays above short put strike | Stock stays below short call strike |
| Breakeven | Short put - Credit | Short call + Credit |
| Max Profit | Net credit received | Net credit received |
| Max Loss | Width - Credit | Width - Credit |
| Assignment Risk | May be assigned stock (buy shares) | May be assigned stock (short shares) |
| Best Entry | After a pullback, elevated IV | After a rally, elevated IV |
When to Choose Each Strategy
- Bull put spread: You expect the stock to hold support or bounce. Sell puts below support levels for the highest win rate.
- Bear call spread: You expect the stock to stall or decline from resistance. Sell calls above resistance levels.
- Either: IV rank above 50 improves credit received and increases probability of profit as volatility mean-reverts.
Strike Selection Guidelines
Conservative (High Win Rate)
Short strike delta: 15-20 (far OTM)
Width: $2-5
Credit: ~20-25% of width
Win rate: ~80-85%
Best for: Income traders, small accounts, consistency
Balanced (Standard)
Short strike delta: 25-35
Width: $5-10
Credit: ~30-35% of width
Win rate: ~65-75%
Best for: Most traders, best risk/reward balance
Aggressive (Higher Reward)
Short strike delta: 40-50 (ATM)
Width: $5-10
Credit: ~40-50% of width
Win rate: ~50-60%
Best for: Strong directional conviction, higher reward targets
Frequently Asked Questions
What is a credit spread calculator?
A credit spread calculator is a tool that computes the maximum profit, maximum loss, breakeven price, and Greeks for bull put spreads and bear call spreads. It uses real-time option prices so you can see exact risk/reward before placing the trade. Our calculator supports 5,500+ tickers and includes probability of profit estimates.
How do you calculate max profit on a credit spread?
Max profit equals the net credit received multiplied by 100. For example, if you collect a $1.50 net credit on a bull put spread, max profit is $150 per contract. This full profit is realized when the stock closes above the short put strike (bull put) or below the short call strike (bear call) at expiration.
What is the max loss formula for a credit spread?
Max loss = (Strike Width - Net Credit) × 100. For a $5-wide spread with $1.50 credit: ($5.00 - $1.50) × 100 = $350. This occurs when the stock moves through both strikes at expiration. Credit spreads always have defined, capped risk.
How do you calculate breakeven on a credit spread?
Bull put spread: Breakeven = Short put strike - Net credit. Bear call spread: Breakeven = Short call strike + Net credit. For a $440/$435 bull put spread with $1.50 credit, breakeven = $440 - $1.50 = $438.50. The stock can drop $6.50 from $445 before you lose money.
What is the difference between a bull put spread and a bear call spread?
A bull put spread sells a higher-strike put and buys a lower-strike put. It profits when the stock stays flat or rises. A bear call spread sells a lower-strike call and buys a higher-strike call. It profits when the stock stays flat or drops. Both collect a net credit upfront and have identical risk/reward math (max profit = credit, max loss = width - credit).
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Start Using the Credit Spread Calculator
Calculate profit, loss, breakeven, and Greeks for bull put spreads and bear call spreads. Free for AAPL, or unlock all 5,500+ tickers with a free trial.
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