The Equity Reality Audit.
Stock options are a promise, not a payment—until they're exercised, taxed, and sold. Find your real cash-out value.
RSU & ISO Equity Auditor
Find the "Real World" value of your stock options after taxes and market volatility.
1. Equity Details
Input the number of shares and current market price. For ISOs, also input your strike price.
2. Tax & Risk Settings
RSUs are taxed as ordinary income upon vesting. ISOs have complex AMT implications (simplified here).
Estimated Fed + State + FICA
Account for a potential stock drop before you sell
Risk-Adjusted Cash Value
$0
After $0 in projected taxes.
Concentration Warning
If your equity represents >10% of your net worth, your portfolio is highly exposed to single-stock risk. This model shows why diversifying can protect your realized gains.
The Tax Triggers
Equity compensation is one of the most complex areas of the tax code. Depending on which "Flavor" of equity you have, your tax liability triggers at different times:
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RSU (Restricted Stock Units)
Taxed as ordinary income at the time of vesting. Even if you don't sell, you owe taxes on the market value that day. Often, companies sell a portion of shares automatically to cover this.
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ISO (Incentive Stock Options)
Highly tax-preferred if you hold for 2 years from grant and 1 year from exercise. However, the "Bargain Element" (Current Price - Strike Price) can trigger Alternative Minimum Tax (AMT) upon exercise.
Strategy: Sell to Rebalance?
Tech workers often fall into the trap of having 90% of their net worth in their employer's stock. This creates double exposure: if the company fails, you lose your income and your wealth at the same time.
Concentration Risk
"The goal of equity is to provide a springboard to broad market index funds. Don't let your paper wealth blind you to real-world risk."
Automate Your Rebalancing
Wealthfront offers advanced equity services tailored for tech employees, including automated RSU selling plans, tax-loss harvesting to offset gains, and diversified portfolios built for long-term growth.
Partner: Wealthfront
Disclaimer: This tool is for educational and illustrative purposes only. Calculations are based on hypothetical tax rates and market volatility. Equity plans have specific vesting schedules and legal restrictions not modeled here. Alternative Minimum Tax (AMT) and state-specific tax laws can significantly impact your actual net value. This is not tax or investment advice. Always consult with a qualified tax advisor or CPA.