Employment Income
Option Exercise Calculator
Calculate the exercise cost, AMT exposure, and breakeven on ISOs and NSOs at different stock prices.
Total exercise cost
$0
Cash to write strike + estimated tax
Paper spread (gain on exercise)
$0
Tax due at exercise
$0
Exercise economics breakdown
💡 Exercise insight
Stock Option Exercise Calculator
The Stock Option Exercise Calculator turns the question of whether to exercise into a concrete cash and tax bill. You enter the number of vested options, the strike price, the current fair market value, the option type (ISO or NSO), and your marginal tax bracket. The calculator returns the total cash needed at exercise (strike plus tax), the paper spread at the current price, the tax owed, and the breakeven sale price. Use it before exercising any meaningful tranche. ISO exercises trigger AMT on the spread rather than ordinary income tax, which is often misunderstood, while NSO exercises hit at full marginal rates immediately, and both decisions deserve a clean calculation before signing the paperwork.