You got the offer. Four years, 4,000 shares, vesting quarterly. You did the math: if the stock stays flat, that's $340,000. If it doubles? You're looking at life-changing money.
But here's what nobody warned you about: RSUs are taxed as ordinary income the moment they vest. Not when you sell. Not when you're ready. When they vest. And depending on your tax bracket, you could be giving up 40% or more before you see a single share hit your account.
Most people find this out the hard way... when their "big" vesting event turns into a surprisingly small deposit and a surprisingly large tax bill. Or worse, when April rolls around and they owe thousands in taxes on shares they haven't even sold yet.
This calculator exists because you shouldn't have to guess. You should know when your RSUs vest, what they're worth, and what you'll actually take home after taxes.
Because equity compensation might be a big part of your financial future. And you deserve to see exactly what that future could look like.
See when each batch of shares vests over 4 years
Federal, state, and payroll taxes for every vesting event
What you'll actually keep after all taxes are paid
See outcomes if stock price goes up 50%, doubles, or drops 20%
See exactly when your RSUs vest and plan for taxes in advance
Explore different future price outcomes
Total Grant Value
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Est. Total Taxes
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Net After Taxes
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Fully Vested Date
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| Vesting Date | Shares | Value | Est. Taxes | Net Proceeds | Cumulative Net |
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RSUs are taxed as ordinary income when they vest, regardless of whether you sell them. Your employer typically withholds taxes automatically, but the withholding rate may not match your actual tax bracket. Consider:
Financial advisors who specialize in equity compensation can help you optimize when to sell, minimize taxes, and diversify strategically.
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Get quick answers to the most common RSU questions
If you have a standard 4-year vesting schedule with a 1-year cliff and quarterly vesting, your first 25% vests exactly one year from your grant date (January 15th of year 2), then approximately 6.25% vests every quarter after that.
The exact dates depend on your company's vesting calendar - some use the grant date anniversary, others use fixed quarterly dates. Check your equity grant agreement or Carta, E*TRADE, or Schwab portal for your specific schedule.
Both, but differently. RSUs are taxed as ordinary income (like your salary) when they vest, based on the stock's fair market value that day. Your employer automatically withholds taxes (usually 22% federal + state), and you receive the net shares.
If you later sell those shares at a higher price, you'll owe capital gains tax on the profit. If you sell at a lower price, you have a capital loss.
Your employer withholds shares to cover taxes—this is called "sell-to-cover." If 100 shares vest worth $10,000 and your combined tax rate is 40%, your employer will sell approximately 40 shares to cover the $4,000 tax bill, depositing 60 shares into your account.
You don't get to choose this—it's automatic for most RSU plans.
No. Unlike stock options, you cannot control when RSUs vest—they vest automatically according to your grant schedule. You also cannot defer the tax liability. The moment they vest, they're taxable income.
However, you can control when you sell the shares after vesting, which affects capital gains taxes.
Unvested RSUs are almost always forfeited immediately when you leave the company, whether you quit or are terminated. There are rare exceptions for negotiated severance packages or specific retention agreements, but the default is: if you leave before they vest, you lose them.
This is why people often time job changes around major vesting dates.
It depends on your financial situation, but many financial advisors recommend selling at least some RSUs at vesting to:
The "right" answer varies based on your overall portfolio, tax situation, confidence in your company's future, and need for cash. This is exactly the kind of question a good financial advisor can help you navigate.
Private company RSUs vest on the same schedule, but there's a critical difference: you can't sell them because there's no public market. This creates a "double trigger" problem—the shares vest (triggering taxes), but you have no way to sell them to pay the tax bill.
Some private companies have tender offers or secondary markets, but you'll often need cash on hand to cover the tax liability. Many private companies now use "double-trigger RSUs" that only become taxable at IPO or acquisition.
RSUs are actual shares given to you (after vesting and taxes)—they have value even if the stock price drops. Stock options are the right to buy shares at a set price (strike price), so they only have value if the stock price goes up.
RSUs are taxed as ordinary income at vesting. Stock options are taxed when you exercise them (buy the shares), and potentially again when you sell. RSUs are simpler but offer less upside potential. Options are riskier but can be more valuable in high-growth scenarios.
Yes, especially if you have significant equity compensation. A good advisor who specializes in equity comp can help you:
The tax savings alone often pays for the advisor.
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