Options Implied Volatility Calculator
Enter spot, strike, days to expiry and the market premium to back out the Black-Scholes implied volatility (estimate; rate defaults to 0).
Results
Fill in the inputs and click Calculate.
- Implied Volatility (Annual)
- –
- Intrinsic Value
- –
- Time Value
- –
Risk disclaimer
Estimates only; real options may involve American exercise, dividends, rate curves and order flow.
What is implied volatility?
Implied volatility is the volatility level “backed out” from the market premium: richer premiums mean higher IV.
It is the only unobservable parameter in option pricing and a common yardstick for comparing expensive versus cheap options.
The solve uses a European Black-Scholes approximation and is not for deep-in-the-money American edge cases.
How to use
- Choose call or put.
- Enter spot, strike and days to expiry.
- Enter the per-unit premium and the risk-free rate (default 0).
- Click Calculate for annualized implied volatility, intrinsic and time value.
Solution method
- Holding other inputs fixed, bisect volatility σ in Black-Scholes until the model price equals the entered premium.
- Intrinsic = call max(spot−strike, 0); put max(strike−spot, 0)
- Time value = premium − intrinsic
Example
Assume spot 100, strike 100, 30 days, 5% rate, call premium 4.77 → implied volatility ≈ 40%.
A premium below the intrinsic floor has no solution — recheck the quote.
FAQ
Relation to the Black-Scholes pricer?
The pricer goes from volatility to price; this page goes the other way using the same model.
Matches an exchange's IV?
Model and rate assumptions differ, so this is a European-style estimate, not any venue's feed.