Options Income Calculators
Free calculators for selling options: covered calls, cash-secured puts, the wheel, and when to roll. Each one shows the numbers option sellers actually use (annualized return, break-even, and adjusted cost basis) with the math printed underneath.
Free, private, and no signup — the numbers you enter never leave your device.
- Your numbers stay privateEvery calculation runs in your browser. We never receive or store your salary, balances, or inputs.
- Always freeNo paywall, no upsell to a calculator that actually works.
- No login, no emailUse every tool instantly — we never gate results behind a signup.
- Sourced defaultsStarting rates and assumptions cite real data, not made-up numbers.
Free to use, not free to run. If a calculator helped, you're welcome to buy us a coffee — entirely optional.
Not financial advice. All results are estimates based on the prices you enter. This tool does not use real-time market data: check live quotes with your broker before you trade.
The calculators
Covered Call Calculator
Return if flat, return if called, annualized return and break-even for any strike.
Cash-Secured Put Calculator
Return on collateral, annualized yield, and your real buy price if assigned.
Wheel Strategy Tracker
Log every put and call. Track adjusted cost basis, premium and annualized return.
Roll vs Close Calculator
In the money? Compare rolling, closing and taking assignment side by side.
How much money do you need to make $1,000 a month selling options?
Divide the yearly income you want by the annualized premium yield you can realistically sustain. At a 12% yield, $1,000 a month ($12,000 a year) takes about $100,000 of stock or cash collateral. Higher yields need more volatile stocks, which also fall harder, so a steadier yield on more capital is usually the sturdier plan.
| Monthly income | At 8% a year | At 12% a year | At 18% a year | At 24% a year |
|---|---|---|---|---|
| $500 | $75,000 | $50,000 | $33,333 | $25,000 |
| $1,000 | $150,000 | $100,000 | $66,667 | $50,000 |
| $2,000 | $300,000 | $200,000 | $133,333 | $100,000 |
| $5,000 | $750,000 | $500,000 | $333,333 | $250,000 |
$1,000
12% a year
Capital needed
$100,000
Find the yield a real trade gives you with the covered call or cash-secured put calculator, then plug it in here.
Covered call vs cash-secured put
Same payoff shape, different starting point. A covered call pays you while you hold shares; a cash-secured put pays you while you wait to buy them. Together they make the wheel.
| Covered call | Cash-secured put | |
|---|---|---|
| You start with | 100 shares per contract | Cash = strike × 100 per contract |
| You're paid to | Agree to sell at the strike | Agree to buy at the strike |
| Return is measured on | The stock's price | The strike (your cash) |
| Break-even | Stock price − premium | Strike − premium |
| If assigned | Shares sold at the strike | Shares bought at the strike |
| Main risk | Stock falls; upside capped | Stock falls; you buy above market |
Questions option sellers ask
How much money do you need to make $1,000 a month selling options?
Capital needed = yearly income ÷ annualized premium yield. $1,000 a month is $12,000 a year, so at a 12% yield you need about $100,000 of shares or cash collateral; at 24% you need about $50,000. Yields above 20% usually come from volatile stocks that can drop just as fast.
What is selling options for income?
Collecting option premiums by selling contracts you're prepared to honor: covered calls on shares you own, or cash-secured puts backed by cash to buy shares. The premium is yours to keep either way; in exchange you accept an obligation to sell (calls) or buy (puts) at the strike price.
How do you annualize an options return?
Multiply the return by 365 and divide by the days the trade lasts. A 1.5% return over 30 days is 1.5% × 365 ÷ 30 = 18.25% annualized. It's a way to compare trades of different lengths; it assumes you could repeat the trade all year, which isn't guaranteed.
Is selling covered calls or cash-secured puts risky?
Yes. Both keep almost all of the stock's downside: the premium only lowers your break-even by a few percent. A covered call also caps your upside at the strike. They are lower-risk than buying options outright, but not lower-risk than owning the stock.
What is the wheel strategy?
Sell cash-secured puts until you're assigned shares, then sell covered calls on those shares until they're called away, then start again with puts. Each step collects premium, and every premium lowers your adjusted cost basis on the stock.
Not financial advice. Money Scale is not a broker, investment adviser or tax professional, and nothing here is a recommendation to buy or sell any security or option. These calculators are for education.
Estimates only. Every figure is a hypothetical estimate built from the numbers you type in. Results ignore taxes, bid-ask spreads, early assignment, margin requirements and anything else you don't enter. Annualized returns assume a trade could be repeated all year, which is not guaranteed. Past or hypothetical results don't predict future returns.
No real-time market data. These tools don't pull live stock or option prices. Quotes change constantly, so confirm current prices, premiums and fees with your broker.
Options involve risk and aren't suitable for every investor: a covered call or cash-secured put can still lose most of the stock's value. Read the OCC's Characteristics and Risks of Standardized Options before trading options.