Enter Grant Details
Formula Used
Vested RSUs = RSU shares × vested percentage.
RSU sale value = vested RSUs × exit price.
RSU ordinary tax = vested RSUs × vesting FMV × ordinary tax rate.
RSU capital gain tax = max(exit price − vesting FMV, 0) × vested RSUs × capital gain tax rate.
RSU net = RSU sale value − RSU ordinary tax − RSU capital gain tax.
Vested options = option shares × vested percentage.
Option exercise cost = vested options × strike price.
Option spread tax = max(exercise FMV − strike price, 0) × vested options × ordinary tax rate.
Option capital gain tax = max(exit price − max(exercise FMV, strike price), 0) × vested options × capital gain tax rate.
Option net = option sale value − exercise cost − fees − option taxes.
How to Use This Calculator
- Enter the number of RSUs and options in your offer.
- Add the strike price for options.
- Enter the share value when RSUs vest.
- Enter the expected share value when you sell.
- Add tax rates for ordinary income and capital gains.
- Include exercise fees or platform costs if they apply.
- Press calculate and review the result above the form.
- Use CSV or PDF export for later comparison.
Example Data Table
| Scenario | RSUs | Options | Strike | Vesting | Exit price |
|---|---|---|---|---|---|
| Base offer | 1,000 | 4,000 | $5.00 | 100% | $20.00 |
| Lower exit | 1,000 | 4,000 | $5.00 | 100% | $12.00 |
| Higher exit | 1,000 | 4,000 | $5.00 | 100% | $30.00 |
Why Compare RSUs and Options?
Equity pay can look simple at first. Yet the final value can change sharply. RSUs and options work in different ways. RSUs usually have value when they vest. Options need a stock price above the strike price. This calculator helps compare both grants under one exit assumption.
Core Equity Ideas
An RSU is a promise of shares after vesting. The value is usually taxed when shares vest. A stock option gives the right to buy shares at a fixed strike price. The option can be powerful when the exit price climbs. It can also become worthless when the exit price stays below the strike.
Taxes and Cash Flow
Taxes matter because the headline grant value is not the amount you keep. RSUs often create ordinary income when they vest. Later growth may create capital gain. Options may need cash to exercise. They may also create taxable spread at exercise. This tool separates sale value, exercise cost, ordinary tax, and capital gain tax.
Risk and Upside
RSUs are usually more stable. Their value moves with the share price, but they do not require a strike payment. Options can offer more upside because you control more shares with less initial value. The tradeoff is risk. A lower exit price can leave options with little or no net gain.
How to Read Results
Start with the after-tax net value. Then review the exercise cost. A large option result may still need large cash outlay. Compare the difference between RSU net value and option net value. The better result depends on your risk tolerance, tax rate, liquidity date, and company outlook.
Planning Notes
The calculator uses simplified tax logic. Real equity rules can vary by country, plan design, option type, and filing status. Use it for planning and scenario review. For final decisions, confirm details with a qualified tax adviser and your equity plan documents.
Useful Scenarios
Run several prices instead of one. Try a low case, base case, and strong case. This shows where options begin to beat RSUs. It also shows when RSUs protect value better. Save each result as a CSV or report. Then compare the outputs beside your offer letter with careful personal planning notes.
FAQs
What is the main difference between RSUs and options?
RSUs become shares after vesting. Options give you the right to buy shares at a strike price. Options need the future share price to exceed the strike price before they create value.
Why do RSUs often feel safer?
RSUs usually keep some value as long as the share price is above zero. They do not require you to pay a strike price to receive the shares.
Can stock options be worth zero?
Yes. If the exit price is below the strike price, exercising may not make sense. The calculator treats those options as having zero value.
How does this calculator handle taxes?
It uses simplified ordinary income and capital gain rates. RSUs are taxed at vesting value. Options are taxed on exercise spread and later appreciation. Real rules can differ.
What is exercise FMV?
Exercise FMV is the share value when options are exercised. It helps estimate taxable spread. This value may differ from the final exit or sale price.
Should I choose based only on net value?
No. Net value is useful, but risk matters too. Also review cash needed to exercise, tax timing, company outlook, vesting rules, and liquidity limits.
Does the CSV include my calculated result?
Yes. The CSV button downloads the main RSU and option comparison. It also includes the sensitivity rows shown in the result table.
Is this calculator tax advice?
No. It is an educational planning tool. Equity taxation can be complex. Confirm your actual treatment with a qualified adviser and your grant documents.