Equity Compensation Decision Tool

By Jay Chang, VP, Wealth Advisor

Last updated July 6, 2026

What Does This Equity Compensation Calculator Estimate?

It estimates what your equity grant is worth, the tax bill if you act today, and the savings that better timing could create. It handles the four common grant types: RSUs, incentive stock options, non-qualified stock options, and ESPP shares, each of which is taxed differently.

The output is a decision timeline, not just a number. Each vesting date, tax trigger, and holding-period milestone appears in order, so you can see which dates on your calendar actually matter.

When Do Equity Decisions Cost Real Money?

Most equity mistakes are timing mistakes. The situations I see most with tech professionals and corporate employees:

• The withholding gap. RSU income is usually withheld at the 22 percent federal supplemental rate, while many earners sit in the 32 to 37 percent brackets. The shortfall arrives at filing. I break down the mechanics in the 22 percent RSU withholding gap.
• Holding every vest by default. Doing nothing is a decision to buy more company stock every quarter. The quarterly vesting tax problem compounds four times a year.
• Concentration creep. Salary, bonus, unvested grants, and portfolio all riding one ticker. My guide to how much concentrated stock is too much gives you a framework for the trim decision.
• Option deadlines. ISO holding periods and post-termination exercise windows are date-driven. Missing one converts favorable tax treatment into ordinary income.

If you are weighing what to do at the next vest, start with whether to sell RSUs when they vest, then build a standing plan with the vest, sell, or hold framework. I use the same framework in my work with tech executives.

How to Use This Calculator

1. Pick your equity type: RSU, ISO, NQSO, or ESPP. Each type is taxed differently, so this choice drives everything downstream.
2. Enter your grant details: total shares, grant date, vesting schedule, and the grant or purchase price if you hold options or ESPP shares.
3. Set the current market price and your marginal federal tax bracket. The tool estimates federal tax only, so treat state tax as an add-on.
4. Read the results: total equity value, estimated tax if you act today, and potential savings from timing. Then walk the decision timeline milestone by milestone.

Equity Compensation Questions I Hear Most

How are RSUs taxed when they vest?

RSUs are taxed as ordinary income at vest, based on the fair market value of the shares on the vesting date. That value lands on your W-2 like a cash bonus. You owe the tax whether or not you sell the shares. Any gain or loss after the vest date is a separate capital gain or loss, measured from the vest-date value.

Why does RSU withholding often fall short of the actual tax?

Most employers withhold RSU income at the default federal supplemental wage rate of 22 percent, or 37 percent on amounts above $1 million. If your marginal bracket is 32, 35, or 37 percent, the default under-withholds and the difference comes due at filing. Large vests can leave a five-figure gap, which is why I treat withholding as a planning item, not an afterthought.

Should I sell my RSUs as soon as they vest?

Selling at vest adds little or no extra tax, because your cost basis equals the vest-date value you already paid ordinary income tax on. Holding is a separate decision: it is a choice to concentrate in company stock. The test I give clients: would you buy that much of the stock today with cash? For many people the answer argues for selling most of each vest.

What is the difference between ISOs and NQSOs?

With non-qualified stock options, the spread between exercise price and market value is taxed as ordinary income at exercise. With incentive stock options, there is no regular income tax at exercise, but the spread can trigger Alternative Minimum Tax. Favorable long-term capital gains treatment on ISOs requires holding two years from grant and one year from exercise.

How much company stock is too much?

There is no single threshold, but concentration risk compounds when your salary, bonus, unvested equity, and portfolio all depend on one company. A useful test: if the position dropped by half, would your retirement timeline change? If yes, the position is likely too large relative to your plan, and a systematic selling program deserves a look.