What is a covered call calculator?

A covered call calculator estimates premium income, annualized yield, breakeven, downside cushion, and capped upside from a covered call trade. Enter the stock price, strike, shares, and option premium and the calculator returns the key numbers you need to evaluate the trade.

How is covered call yield calculated?

Covered call yield is premium received divided by capital at risk (typically shares × current price), expressed as a percentage. Annualized yield extrapolates that figure across a full year using the days to expiration, which makes it easier to compare trades across different DTEs.

What is the breakeven on a covered call?

The breakeven on a covered call is the stock cost basis minus the premium collected. If the stock closes above breakeven at expiration, the position is profitable; below breakeven, the premium offsets some of the loss.

What is the maximum profit on a covered call?

Maximum profit on a covered call is (strike price − cost basis) × shares + premium collected. Profit is capped at the strike — if the stock rallies past the strike, the shares are called away and the upside above the strike is forfeited.

Is this covered call calculator free?

Yes. The Wheel Strategy Options covered call calculator is free to use with no signup required.

Is there a Google Sheets template for covered calls?

Yes. We publish a free Google Sheets options tracker for wheel trades (cash-secured puts, covered calls, rolls, and cost basis). Use this calculator for quick yield math, then log positions in the spreadsheet or our wheel strategy tracker.

Free Covered Call Calculator — Yield, Breakeven & Max Profit

Calculate premium income, annualized yield, breakeven, and max profit from selling covered calls—then compare all opportunities in our free screener.

Download the free Google Sheets wheel template

After you model yield here, log CSPs, covered calls, assignment, and cost basis in our copy-paste workbook—or use the wheel strategy tracker.

Get the Sheets template

Stock Details

Stock Symbol

Enter the stock you own or want to own

Risk Profile

Moderate risk, 3-5% out-of-the-money (strike 3-5% above stock price)

Option Timeframe

Choose weekly or monthly expiration cycles

How the covered call calculator works

A covered call means you own at least 100 shares of a stock and sell one call contract against them to collect premium. This free covered call calculator turns the stock price, strike, and premium into the four numbers that matter—premium income, annualized yield, breakeven, and maximum profit—so you can judge a trade in seconds before opening the covered call screener.

Covered call formulas

Premium income = option premium × 100 × number of contracts.
Annualized yield = (premium ÷ (stock price × shares)) × (365 ÷ days to expiration) × 100.
Breakeven = stock cost basis − premium per share.
Maximum profit = (strike − cost basis) × shares + premium collected (upside is capped at the strike).

Worked example

Say you own 100 shares of a $100 stock and sell a 30-day $105 call for $1.50. You collect $150 in premium. Annualized yield is ($150 ÷ $10,000) × (365 ÷ 30) × 100 ≈ 18.3%. Your breakeven drops to $98.50, and maximum profit if the stock is called away is ($105 − $100) × 100 + $150 = $650. The calculator above runs this math on live option chains for any ticker.

Next steps

Compare every strike and expiration in the free covered call screener.
See live ticker examples like MSFT covered calls and AAPL covered calls.
Learn which names fit best in best stocks for the wheel strategy.
Log fills and P&L in the wheel strategy tracker.

Free Covered Call Calculator — Premium, Yield & Breakeven