Decision Summary
Total after-tax equity value
$108,000.00
10,000 ISO options with $15 spread per share over 4-year vest.
- ISO exercise above $100k vesting in a single year may trigger AMT. Consider staggering exercises.
Tax
Equity Compensation Calculator
Compare ISOs vs NSOs, model AMT triggers, evaluate 83(b) elections, and project vesting schedule value under several stock price and exit-year scenarios.
Scenario Comparison
The main answer and the most important supporting outputs in one glance.
Total after-tax equity value
$108,000.00
Spread per share
$15.00
Total pre-tax spread
$150,000.00
Shares vesting per year
2,500
Key Metrics
Spread per share
$15.00
Total pre-tax spread
$150,000.00
Shares vesting per year
2,500
AMT preference on annual exercise
$10,500.00
How to use it
- Enter grant type (ISO, NSO, or RSU), number of shares, strike price, current fair market value, vesting schedule, and your marginal tax rate including state. For ISOs, also enter whether you plan to hold for the qualifying disposition period and your AMT exposure.
- Read the current spread value, tax at exercise, tax at sale under different holding periods, and the net after-tax value. ISOs can trigger AMT at exercise even though no cash is received, which catches many employees off guard.
- An 83(b) election on early-exercised options can save significant tax if the company succeeds, but you lose the tax paid if the stock becomes worthless. RSUs are simpler because tax hits at vesting based on market value with no exercise decision required.
- Model exercise-and-hold versus exercise-and-sell for options, consider an 83(b) election within 30 days of early exercise, and check whether concentrating in employer stock creates excessive single-stock risk. Use the tax bracket calculator to understand AMT exposure.
- Re-run at each vesting event, before exercising options, and when the stock price moves significantly. Track vested versus unvested value, tax liability at exercise, and portfolio concentration in employer stock.
AI Integrations
Contract, discovery endpoints, and developer notes for agent use.
Always available for agents
AI Integrations
Contract, discovery endpoints, and developer notes for agent use.
Tool contract JSON
https://aifinhub.io/contracts/equity-compensation-calculator.jsonStable input and output contract for this exact tool.
Human review
People can use the browser page to sense-check outputs and charts, but agents should still execute against the contract and discovery endpoints.
- /agent-tools.json - machine-readable tool index.
- /llms.txt - human-readable model discovery guide.
- /.well-known/webmcp.json - WebMCP capabilities manifest.
- /.well-known/ai-plugin.json - plugin-style discovery manifest.
{
"tool": "equity_compensation",
"num_options": 10000,
"strike_price": 12.5,
"current_fmv": 38,
"vesting_years": 4,
"option_type": "iso",
"tax_rate_percent": 32,
"amt_rate_percent": 28
} Expand developer notes
Agent playbook
- Resolve Equity Compensation Calculator from /agent-tools.json and open its contract before execution.
- Validate inputs against the contract schema instead of scraping labels from the page UI.
- Open the browser page only when a person wants to review charts, assumptions, or related tools.
Agent FAQ
Should ChatGPT, Claude, or another agent click through the UI?
No. Start with /agent-tools.json, then follow the tool's contract URL. The page UI is for human review, not parameter discovery.
When do tools show Quick and Advanced?
Every tool opens in Quick Start first. Advanced Controls keeps the same scenario, reveals more assumptions or diagnostics, and every tool keeps AI integrations inline below the instructions.
When should an agent still open the browser page?
Open it when a human wants to sense-check the output, review the chart, or keep exploring related tools after the calculation finishes.
Questions people usually ask
What types of equity does this model?
It handles ISOs (Incentive Stock Options), NSOs (Non-Qualified Stock Options), RSUs (Restricted Stock Units), and ESPP (Employee Stock Purchase Plan). Each has different tax treatment, vesting schedules, and exercise strategies.
What is the difference between ISOs and NSOs for tax purposes?
ISOs get favorable long-term capital gains treatment if you hold shares 1 year after exercise and 2 years after grant. NSOs are taxed as ordinary income at exercise on the spread between strike and market price. ISOs can trigger AMT (Alternative Minimum Tax), which the tool models.
Should I exercise my stock options early?
Early exercise of ISOs can start the holding period clock for favorable tax treatment and may reduce AMT exposure if the spread is small. However, you risk losing money if the stock drops. The tool models exercise timing scenarios so you can compare the tax and risk tradeoffs.
When should I use this vs asking my company's stock plan administrator?
Use this for modeling exercise timing, tax impact, and concentration risk. Your stock plan administrator can confirm grant details, vesting schedules, and deadlines but typically cannot provide personalized tax or financial strategy advice.
Is my data stored?
No. All calculations happen in your browser. Nothing is stored or transmitted.
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