RSU Vesting Value Calculator
Turn an RSU grant into a year-by-year vesting schedule and its after-tax value — restricted stock is taxed as income the moment it vests.
How it works
Shares per year = units ÷ vesting years · Vest value = shares × price (grown each year) · After tax = vest value × (1 − tax rate)
Restricted stock units are a promise of shares that convert to real stock on each vesting date — commonly a quarter of the grant per year over four years. The full value of the shares that vest is taxed as ordinary income at that moment, usually with shares automatically sold to cover withholding, so what you keep is the after-tax amount. Because the value floats with the share price, a grant sized at today’s price can be worth much more or less by the time later tranches vest.
Worked example
A 4,000-unit grant vesting over 4 years releases 1,000 shares a year. At a flat $50 price that is $50,000 gross per year, $200,000 total; at a 32% tax rate you net about $136,000 across the four years.
Frequently asked questions
When are RSUs taxed?
At vesting, not at grant. The market value of the shares that vest is ordinary income that year, and employers typically sell a portion of the shares (or withhold cash) to cover the tax. Any gain or loss after vesting is a separate capital gain when you eventually sell.
Should I sell RSUs as they vest or hold them?
Since you have already paid income tax on the vest value, holding is economically the same as choosing to buy your employer’s stock with that after-tax money. Many advisors suggest selling at vest to diversify away from concentrating both your salary and savings in one company.
What is a vesting cliff?
A cliff means nothing vests until you reach a milestone — often one year — after which the first chunk vests at once and the rest vests periodically. This calculator assumes even annual vesting; adjust the first-year figure if your grant has a cliff.
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Educational estimate, not financial or tax advice. Real taxes, benefits and offers vary — confirm details with your employer or a professional.