What a stock option grant is currently worth, split into what has vested and what has not, and what remains after the cost of exercising and the tax. The headline number in an offer letter is almost always the fully vested pre-tax figure, which is the least useful of the four.
Also called: stock option value calculator, esop calculator.
₹17,50,000 of gross gain on 5,000 vested options at 400 against a 50 strike. 5000 of 10000 options have vested after 2 years, leaving 5000 still to come. Exercising the vested options costs 250000 up front, and in most jurisdictions the 1750000 spread is taxed as income at that moment, leaving about 1225000.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
| Year | Options vested | Share vested | Gross value |
|---|---|---|---|
| Year 0 | 0 | 0% | ₹0 |
| Year 1 | 2,500 | 25% | ₹8,75,000 |
| Year 2 | 5,000 | 50% | ₹17,50,000 |
| Year 3 | 7,500 | 75% | ₹26,25,000 |
| Year 4 | 10,000 | 100% | ₹35,00,000 |
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.
An option is the right to buy at the strike price, so it is worth the spread and nothing more. Vesting decides how much of the grant you actually hold: with a one year cliff nothing vests at all until that date, and then the first year lands in one piece. Exercising costs real money up front, the strike times the number of options, and in most jurisdictions the spread is taxed as income at that moment even though nothing has been sold. That combination, cash out and tax due on an illiquid asset, is what makes exercising a private company option a genuine risk rather than a windfall.
vested options times the spread between the current price and the strike; below the strike the options are worth nothing at allEach of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.
Value of the vested options₹17,50,000
5000 vested at a 350 spread
Open this exampleValue of the vested options₹0
boundary: the cliff is all or nothing
Open this exampleFormula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator