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HomeSalaryStock Options Calculator

Stock Options Calculator

Calculate the current and projected value of your employee stock options. Supports ISOs and NSOs with tax estimation.

Auto-updated May 12, 2026 · Verified daily against IRS, Fed & Treasury sources

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Stock Options Calculator

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Assumptions· 2026

  • ·ISO: spread (FMV − strike) at exercise is AMT preference item, not regular income
  • ·NSO: spread at exercise is ordinary W-2 income; employer withholds at 22% supplemental rate
  • ·Long-term LTCG rate on ISO stock if held > 2 years from grant AND > 1 year from exercise
  • ·Black-Scholes fair value estimate shown using entered volatility and risk-free rate
When this is wrong
  • ·ISO AMT exposure: large ISO exercises can trigger significant AMT; model with tax professional
  • ·83(b) election within 30 days of restricted stock/early exercise — irrevocable; missing deadline costly
  • ·Incentive stock option $100k per-year vesting limit for ISO treatment (excess treated as NSO)
  • ·Liquidity timeline for private company stock: no historically reliable market even after vesting
Assumptions· 2026▾
  • ·ISO: spread (FMV − strike) at exercise is AMT preference item, not regular income
  • ·NSO: spread at exercise is ordinary W-2 income; employer withholds at 22% supplemental rate
  • ·Long-term LTCG rate on ISO stock if held > 2 years from grant AND > 1 year from exercise
  • ·Black-Scholes fair value estimate shown using entered volatility and risk-free rate
When this is wrong
  • ·ISO AMT exposure: large ISO exercises can trigger significant AMT; model with tax professional
  • ·83(b) election within 30 days of restricted stock/early exercise — irrevocable; missing deadline costly
  • ·Incentive stock option $100k per-year vesting limit for ISO treatment (excess treated as NSO)
  • ·Liquidity timeline for private company stock: no historically reliable market even after vesting
Real-world example: Software engineer evaluating a job offer▾

A mid-level software engineer in Austin, TX is comparing a $130,000 W-2 offer against their current $115,000 role. The new offer includes a $10,000 signing bonus and 0.1% equity in a Series B company.

  • New base salary: $130,000
  • Current base salary: $115,000
  • Signing bonus: $10,000 (taxed as supplemental)
  • State income tax: 0% (Texas)
  • Federal marginal bracket: 22%
Net take-home gain (Year 1)
~$9,400 after-tax increase including signing bonus

Takeaway: Texas has no state income tax, which inflates take-home vs. the same offer in California (~9.3% marginal) or New York (~6.85%). Run the comparison with your state's rate above.

When this calculator is wrong▾
  • Federal withholding estimates depend on your W-4 elections

    Take-home calculators estimate withholding based on single/married status and claimed allowances. If you have side income, multiple jobs, or itemized deductions, your actual withholding will differ. The IRS Tax Withholding Estimator is the most accurate tool for W-4 calibration.

  • State income tax is highly variable

    Nine states have no income tax (TX, FL, WA, NV, AK, SD, WY, TN, NH). California tops out at 13.3% marginal. State tax can shift your net paycheck by $200-$1,000/month on a $100K salary. Always select your state before reading take-home results.

    Cost of Living Salary Adjustment
  • Benefits are excluded from most salary calculators

    Employer-paid health insurance, 401(k) match, HSA contributions, and paid leave have real dollar value — typically $8,000-$25,000/year for a mid-career employee. Comparing two offers on base salary alone ignores a major component of total compensation.

    Benefits Value Calculator
  • Self-employment adds 7.65% employer-side FICA

    W-2 employees pay 7.65% FICA (SS + Medicare); employers match it invisibly. 1099 contractors pay the full 15.3% self-employment tax. A $100K 1099 contract has roughly $7,650 more tax friction than a $100K W-2 salary before any other adjustments.

    1099 vs W-2 Tax Comparison
  • Bonus taxation uses supplemental withholding rates

    Bonuses are withheld at a flat 22% federal supplemental rate (or 37% over $1M) — not your effective rate. Your actual tax on the bonus is determined at year-end filing. If your marginal rate is below 22%, you'll get a refund; above, you may owe.

    Bonus Tax Calculator

Related Calculators

1099 Tax Calculator →Annual to Hourly Salary Converter →Average Salary by State 2026 →
Your Results

Based on your inputs

ℹ️Demo numbers — replace inputs to see yours
Vested Options Value
$75,000positivepositive trend

5,000 options vested

Intrinsic Value/Share$15.00
Total Options (all) Value$150,000
Vested Options Value$75,000
ISO (no tax at exercise)$0
Vested After-Tax Value$75,000
Exercise Cost (5,000 × $5)$25,000
Projected Value at $50/share$450,000

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Stock options give you the right to buy shares at a fixed price (strike price). If the stock rises above strike price, you profit from the difference.

ISOs (Incentive Stock Options) have favorable tax treatment but come with AMT risk. NSOs (Non-Qualified Stock Options) are taxed as ordinary income when exercised.

Intrinsic value = (Current Price − Strike Price) × Number of Options. Multiply by vesting percentage for vested value.

Unvested options are typically forfeited. Vested options must usually be exercised within 90 days of leaving (for ISOs) or they expire.

The strike price is the fixed price at which you can buy shares, set when options are granted. It is usually the fair market value on the grant date. You profit only when the stock price exceeds this amount.

NSOs are taxed as ordinary income on the spread between strike price and market price at exercise. ISOs have no regular tax at exercise but may trigger Alternative Minimum Tax on the spread amount.

Most companies require you to exercise vested ISOs within 90 days of leaving. After that, unexercised options expire worthless. Some companies now offer extended exercise windows of up to 10 years.

Early exercise can reduce future tax liability through an 83(b) election, locking in lower valuations. This strategy works best for early-stage startups where current valuations are low and growth potential is high.

Exercising ISOs without selling creates a phantom income event for AMT purposes. The spread between strike and market price is added to AMT income, potentially creating a large tax bill with no cash proceeds.

Use the most recent 409A valuation as fair market value. Apply a liquidity discount of 20 to 40 percent since shares cannot be easily sold. Consider the company's funding stage, revenue growth, and path to IPO.

Intrinsic Value = (Current Price − Strike) × Shares

Vested Value = Intrinsic × Vested %

NSO After-Tax = Vested Value × (1 − Tax Rate)

Published byJere Salmisto· Founder, CalcFiReviewed byCalcFi EditorialEditorial standardsMethodologyLast updated May 13, 2026

Primary sources & authoritative references

Every formula on this page traces to a federal agency, central bank, or peer-reviewed institution. We cite the rule-makers, not secondhand blogs.

  • BLS — Occupational Employment and Wage Statistics — U.S. Bureau of Labor Statistics (opens in new tab)
  • BLS — Current Population Survey (earnings data) — U.S. Bureau of Labor Statistics (opens in new tab)

Found an error in a formula or source? Report it →

Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.