Price a stock option using the classic Black-Scholes formula.
This calculator prices a European call or put option on a non-dividend stock using the Black-Scholes model.
The model estimates a fair price from the stock price, strike, time to expiration, volatility, and risk-free rate. It assumes the option is European, meaning it can only be exercised at expiration, and that the underlying stock pays no dividends. Volatility is the biggest driver of the result, so a small change in the annual volatility input can move the price noticeably.
The option price splits into intrinsic value, the amount it is already in the money, and time value, the extra worth of holding it until expiration. Options that are far from the strike or close to expiring carry less time value. This tool is for education and does not account for early exercise, dividends, transaction costs, or real market bid-ask spreads.
A call gains value when the stock rises above the strike, while a put gains value when the stock falls below it. You select the type at the top of the calculator.
Higher volatility means a wider range of possible outcomes, which raises the chance the option finishes deeply in the money. Because losses are capped at the premium, that added uncertainty increases the option's value.
No, it assumes a European option on a stock that pays no dividends. American options and dividend payers can differ, so treat this as an approximation only.
See the exact formula and a worked example on our methodology page.