Equity Calculator
Model RSU, ISO, and NSO vesting with tax implications. See vest schedule, AMT impact, and exit scenarios.
FAQ
What's the difference between RSU, ISO, and NSO?
RSU is taxed as ordinary income at vest. ISO can avoid tax at exercise (but may trigger AMT) and qualifies for long-term capital gains if held long enough. NSO is taxed as ordinary income on the bargain element at exercise.
What is AMT and why does it matter for ISOs?
Alternative Minimum Tax — a parallel tax system. ISO bargain element (FMV - strike) at exercise is an AMT preference item. If your ISO exercise creates a large preference, you may owe AMT even though regular tax shows nothing owed.
What does "qualified disposition" mean?
For ISOs: hold the shares at least 2 years from grant AND 1 year from exercise to get long-term capital gains treatment on the full gain (vs ordinary income on the bargain element).
Do I owe tax when my grant vests?
RSUs: yes — vesting is the taxable event. ISOs/NSOs: vesting itself isn't taxable; exercise is.
Disclaimer. Equity taxation is complex and varies by jurisdiction. This is a simplified model. AMT calculations are estimates only. Consult a CPA familiar with equity comp before exercising, holding, or selling.