ISO · NSO · RSU · AMT · LTCG

stock optionsISONSORSUequityAMTLTCGcapital gainsstartup compensation

//// Financial · Equity Compensation

Equity & Stock Options Calculator

ISO, NSO, or RSU? Model your spread, exercise tax, AMT exposure, and the hold vs sell-now tradeoff — with federal, state, and long-term capital gains rates all factored in.

401(k) Limit 2024$23,000(+$7,500 catch-up 50+)

Roth IRA Limit$7,000(MAGI phase-out applies)

S&P 500 Avg Return~10%/yr(nominal, historical)

Option Type

Non-Qualified Stock Options — spread (FMV − strike) taxed as ordinary income at exercise. Post-exercise appreciation at LTCG if held 1yr+.

Grant Details

Number of shares

Strike price

Current FMV / share

Expected exit priceYour optimistic exit scenario

Tax Rates

Federal ordinary rateYour marginal income tax bracket

State income rate

LTCG rate

Federal LTCG rate

Spread

$55K

(FMV − strike) × 10,000 shares

Tax at Exercise

$16K

Ordinary income on spread (29%)

Net — Sell Now

$39K

After all taxes today

Net — Hold to Exit

$175K

At $25.00/share

Hold vs Sell Now

$39K

Sell Now (net)

All ordinary income tax applied today

$175K

Hold to Exit (net)

+$136,000 advantage

Holding to a $25.00/share exit saves $136,000 in taxes vs selling today. Requires holding the qualifying period for 1yr from exercise.

Tax Notes

• NSO: spread at exercise is ordinary income. Post-exercise appreciation is LTCG if held 1yr+.

Spread (paper gain at exercise)

spread = (FMV − strike) × shares

($8.00 − $2.50) × 10,000

= $55,000

NSO: this spread is ordinary income at exercise.

Tax at exercise / vest

tax = spread × (federalRate + stateRate)

$55,000 × 29%

= $15,950

Exit scenario — hold to expected price

exitGain = spread × ordinary + (exitPrice − FMV) × shares × LTCG

exit at $25.00/share

= Net: $175,050

Hold advantage over sell-now: $136,000

Hold vs sell-now comparison

holdAdvantage = holdNet − sellNowNet

$175,050 − $39,050

= +$136,000 advantage to holding

Key insight

NSOs are straightforward but double-taxed: ordinary income at exercise, then LTCG on subsequent appreciation. The hold vs sell calculation here shows whether waiting for LTCG treatment on post-exercise gains is worth the concentration risk.

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