Equity Vesting Value Calculator

A 4-year vesting schedule on 4,000 shares means 1,000 shares vest each year. At an estimated 25 per share at vest, that is 25,000 of taxable equity income annually. After 40% marginal tax that drops to 15,000 net per year — 60,000 over the full schedule.

What the result means

RSU and similar grants are usually taxed as ordinary income at vest, not as capital gains. The post-tax figure assumes you sell at vest at the price you entered — holding longer exposes you to capital gains or losses on top.

Cliff vesting (no vest until a date, then a chunk vests) is not modelled — the calculator assumes even annual vesting. Adjust by entering the post-cliff vesting period only.

Quick example

With total shares granted of 4,000 and vesting years of 4 (plus estimated share price at vest of 25 and marginal income tax rate of 40%), the result is 15,000.00. Change any figure and watch the output shift — it's often more useful to see the pattern than to memorise the formula.

Which inputs matter most

You enter Total Shares Granted, Vesting Years, Estimated Share Price at Vest, and Marginal Income Tax Rate. Not every input has equal weight. Adjusting one input at a time toward extreme values shows which ones move the result most.

What's happening under the hood

Linear vesting: total shares are divided evenly across the vesting years. Each tranche is valued at the estimated share price and taxed at the supplied marginal rate as ordinary income. Subsequent capital gains and the share-price path between vest dates are out of scope. The formula is listed in full below. If the number looks off, you can retrace the calculation by hand — that's the point of showing the working.

Using this in pay negotiations

Knowing the exact figure behind a headline rate gives you specific numbers to anchor to in conversations about pay. "The difference is £X per month after tax" lands harder than "a couple of grand a year". Concrete numbers move decisions.

What this doesn't capture

Tax bands, pension contributions, student-loan deductions, and benefits-in-kind sit outside this calculation. The figure is the headline; your actual position depends on local tax rules and personal circumstances. Pair with a dedicated take-home calculator for the full picture.