Project your equity grant's vesting schedule, share value at each vest, and estimated after tax proceeds, based on your own price and growth assumptions.
| Year | Shares Vesting | Projected Price | Gross Value | Est. Tax | Net Value |
|---|
Equity compensation typically vests gradually rather than all at once, most commonly on a four year schedule with a one year cliff, meaning nothing vests until your first anniversary, at which point a chunk vests immediately, followed by smaller regular installments after that. This calculator builds that exact schedule from your grant size and timeline, then projects the value of each vesting tranche using your assumed stock price growth rate. Every slider on this page has a matching number field: drag to explore, or type exact figures if you already know your numbers.
Restricted stock units, or RSUs, are simply shares that become fully yours once they vest, worth their full market value at that time. Stock options instead give you the right to buy shares at a fixed strike price, so their value at vesting is the spread between the current price and your strike price, which can be zero if the stock hasn't risen above your strike. Toggle between the two above to see how the underlying math changes.
RSUs are taxed as ordinary income based on the stock's value on the day each tranche vests, regardless of whether you sell the shares, and this is typically withheld automatically by selling a portion of the newly vested shares. Non qualified stock options are taxed similarly, as ordinary income on the spread between the stock price and strike price at the time of exercise. Incentive stock options follow different and more favorable rules but can trigger the alternative minimum tax, which this calculator does not model.
Unlike a savings account or bond, equity compensation's future value is entirely tied to a single company's stock price, which can be far more volatile than a diversified portfolio. A small change in your growth assumption compounds significantly over a multi year vesting schedule, which is why this tool lets you test both optimistic and pessimistic scenarios, including negative growth, rather than assuming steady, guaranteed appreciation.
Equity compensation, including RSUs, stock options, and their tax treatment, is core content in the tax and employee benefits planning sections of the CFP exam. The underlying vesting and valuation math also connects to time value of money concepts tested on CFA Level 1. Our Marginal vs. Effective Tax Rate Calculator can help you estimate the tax rate to use here.
In almost all standard equity plans, unvested shares are simply forfeited when you leave, with no compensation for them. This is exactly why the vesting cliff and schedule matter so much when evaluating a job offer or deciding when to leave a role.
For non qualified stock options, yes, the spread is taxed as ordinary income at exercise regardless of whether you sell. For RSUs, tax is owed at vesting regardless of a sale as well. Incentive stock options can differ, potentially deferring regular tax until sale but triggering AMT considerations at exercise instead.
Because nothing vests before the cliff date, leaving a company even one day before your cliff typically means forfeiting the entire grant with nothing vested at all. This is one of the most consequential dates in any equity compensation package.
Yes. Each slider has a paired number input. Type directly into any gold field to enter a precise figure, and the slider along with all results update immediately.
Equity compensation math shows up directly on CFP and CFA exams. Practice for free.
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