Estimate the tax effect of exercising employee stock options and later selling the shares. This calculator separates exercise spread treated as ordinary income from post-exercise appreciation treated as a capital gain, using tax rates you supply. It is flexible enough for scenario planning but is not a substitute for jurisdiction-specific tax advice.
The main result is estimated total tax from the two modeled components. Net proceeds subtract both tax components and the option exercise cost from gross sale proceeds.
Actual treatment depends on option type, holding period, payroll withholding, AMT, losses, deductions, and jurisdiction. Enter rates that fit your situation.
For 1,000 shares, a $10 strike, $20 exercise value, $28 sale price, 32% ordinary rate, and 20% capital-gains rate, estimated tax is $4,800 and modeled net proceeds are $13,200 after the $10,000 exercise cost.
No. Use the tax-rate input as a planning assumption; actual withholding and final liability can differ.
Yes, where a growth field is provided, but the rate must remain above negative 100 percent.
The math can use fractional shares. Your employer plan or broker may restrict actual purchases or sales to whole shares.
No. The calculator uses the single price or constant growth assumption you enter and does not simulate volatility.
No. It is an educational estimate; confirm option, RSU, or ESPP treatment with a qualified tax professional.
| Variable | Meaning | Unit |
|---|---|---|
| Shares exercised | Number of options exercised. | shares |
| Strike price | Price paid per share. | USD |
| Value at exercise | Fair market value per share at exercise. | USD |
| Sale price | Expected price per share when sold. | USD |
| Ordinary income tax rate | Combined marginal rate assumption. | % |
| Capital gains tax rate | Rate applied to post-exercise gain. | % |