Calculator
Example data table
| Shares | Vested% | Type | Strike | IPO Price | Dilution% | Prob% | Liq% | Tax% | Fees% | Estimated Net |
|---|---|---|---|---|---|---|---|---|---|---|
| 10,000 | 50 | Options | $1.00 | $15.00 | 10 | 60 | 5 | 30 | 1 | $22,353.60 |
| 4,000 | 100 | RSUs | $0.00 | $20.00 | 15 | 75 | 8 | 32 | 1 | $35,198.40 |
Numbers are illustrative examples to demonstrate the output format.
Formula used
The calculator estimates proceeds from selling a portion of vested equity at an assumed IPO price, then applies adjustment factors:
- Vested shares = Shares granted × (Vested% ÷ 100)
- Shares sold = Vested shares × (Sell% ÷ 100)
- Gross sale proceeds = Shares sold × Expected IPO price
- Adjusted proceeds = Gross proceeds × (1 − Dilution%) × IPO Probability% × (1 − Liquidity discount%)
- Exercise cost (Options) = Shares sold × Strike price
- Fees = Adjusted proceeds × Transaction fee%
- Profit before tax = max(0, Adjusted proceeds − Exercise cost − Fees)
- Taxes = Profit before tax × Effective tax%
- Net after tax = max(0, Profit before tax − Taxes)
This is a planning model; real outcomes depend on plan rules, tax jurisdiction, and liquidity constraints.
How to use this calculator
- Choose your equity type (Options or RSUs) and a currency.
- Enter shares granted, vested percent, and how much you’d sell.
- Provide strike price for options, plus an expected IPO price.
- Add realism with dilution, IPO probability, and liquidity discount.
- Set one effective tax rate and expected transaction fees.
- Press Calculate to see net results above the form.
- Use scenario rows to compare downside and upside outcomes.
- Export your results using CSV or PDF download buttons.
FAQs
1) Is this calculator accurate for every equity plan?
It’s a planning estimate. Equity plans differ in vesting rules, taxes, exercise windows, and selling restrictions. Use it to compare scenarios, not as a final number.
2) What does “dilution” mean here?
Dilution approximates how future fundraising and pool changes can reduce your ownership’s economic value. This model applies dilution as a value factor to keep planning simple.
3) Why include an IPO probability?
Many companies never reach an IPO or do so later than expected. Probability turns the output into an “expected value” useful for salary negotiations and career planning.
4) What is a liquidity discount?
It represents constraints like lockups, limited trading windows, market volatility, or needing to hold longer. If you want an optimistic view, set it to zero.
5) How should I pick a tax rate?
Use one blended rate that reflects your likely taxes on equity profit. If you’re unsure, run multiple scenarios (e.g., 20%, 30%, 40%) to see sensitivity.
6) Options vs RSUs: what changes?
Options require paying a strike price to exercise, so exercise cost reduces proceeds. RSUs generally have no strike cost, but may have different tax timing in practice.
7) Can I model selling only part of my shares?
Yes. Use “Sell at IPO (%)” to estimate partial selling. Keeping some shares is common, especially if you believe in long-term upside after the lockup period.
8) Why doesn’t the lockup directly change the math?
Lockup length varies by deal and timing. This tool treats liquidity discount as the numeric impact, while lockup months are displayed for context and reporting.