ESOP Calculator
Calculate the value of your employee stock options and understand the tax impact at exercise and sale. Adjust grant size, strike price, FMV, growth assumptions, and tax rates to see your potential after-tax proceeds.
How employee stock options work
Employee Stock Options (ESOPs) give you the right to buy company shares at a fixed strike price. If the company's fair market value (FMV) rises above the strike, your options are "in the money." When you exercise, you pay the strike price and receive shares worth the current FMV — the difference is the bargain element, taxed as ordinary income. Any additional gain from exercise to sale is taxed as a capital gain.
Key insight: The tax at exercise (on the bargain element) can be substantial. A lower strike price and higher FMV growth increase potential after-tax proceeds, but also increase the upfront tax bill. This tool helps you balance these factors.
ESOP Calculator — Employee Stock Option Plan Value
Free ESOP calculator. Estimate your employee stock option value, tax at exercise, tax at sale, and after-tax proceeds. Plan your ISO/NSO exercise strategy.