Estimate the after-tax value of exercising employee stock options. The calculator separates exercise cost, ordinary income on the bargain element, later capital gain, and transaction fees to show net proceeds and return on cash invested.
Net value = sale proceeds − exercise cost − ordinary tax on bargain element − capital-gain tax − fees
The main result is estimated net cash after the exercise cost, modeled taxes, and entered fees.
This simplified estimate does not determine ISO/NSO classification, AMT, withholding, holding-period qualification, or jurisdiction-specific tax treatment.
For 1,000 options with a $10 strike, $25 exercise value, $35 sale price, 32% ordinary tax, 20% capital-gain tax, and $500 fees, estimated after-tax value is $17,700.
No. It uses user-entered ordinary and capital-gain rates for a simplified scenario.
The capital-gain component is floored at zero; this tool does not model capital-loss tax benefits.
Yes. Exercise cost and entered fees are deducted from sale proceeds.
Yes, by setting exercise and sale values appropriately, but confirm withholding and broker fees separately.
No. Add AMT effects through professional scenario analysis rather than treating this estimate as a return calculation.
| Component | Calculation |
|---|---|
| Bargain element | max(0, exercise value − strike) × options |
| Post-exercise gain | max(0, sale price − exercise value) × options |
| Exercise cost | strike × options |