RSUs
Restricted Stock Units usually become taxable as ordinary income when they vest, based on fair market value. Employers often withhold shares or cash to cover taxes.
US employee equity · realcalculator.org
Share Incentive Plan Calculator
Project the after-tax value of US RSUs, ESOP shares, or stock options. Model vesting, share-price growth, and estimated federal, state, and FICA tax.
Quick planning cues
- RSUs: often taxed on FMV at vest
- Options: income on spread at exercise
- Common vest: 4 years equal annual
- Model federal + state + FICA
Grant details
Model US employee equity — RSUs, ESOP shares, or stock options — with vesting, growth, and estimated federal, state, and FICA tax.
Projected results
Illustrative after-tax value if shares vest equally each year and the stock grows at your assumed rate.
Press Calculate share value to see year-by-year vesting projections and estimated after-tax proceeds.
What is a Share Incentive Plan?
In the United States, a Share Incentive Plan (also called a stock or equity incentive plan) is how employers grant workers an ownership stake — typically through RSUs, ESOP shares, or stock options. The headline grant value is only a starting point; vesting, share-price growth, and taxes decide what you actually keep.
This Share Incentive Plan calculator projects that journey: equal annual vesting, an assumed growth rate, and estimated federal, state, and FICA tax on compensation income when equity delivers value.
ESOP shares
Employee Stock Ownership Plan shares build retirement ownership. Tax timing depends on distributions and plan rules; this tool uses a simplified compensation-style projection for planning comparisons.
Stock options
Nonqualified stock options (NSOs) create ordinary income on the spread at exercise. Incentive stock options (ISOs) can involve AMT — not fully modeled here — so treat ISO results as directional only.
Why tax matters
Federal brackets, state tax, and FICA can take a large cut of vested or exercised value. Modeling an after-tax number helps compare offers and plan sell-to-cover decisions.
What is a Share Incentive Plan calculator?
A Share Incentive Plan calculator helps US employees estimate the future after-tax value of employer equity. Enter shares, price, vesting length, growth, and tax rates to see year-by-year gross value, estimated tax, and net proceeds.
Vesting model
Shares are assumed to vest in equal annual installments over the period you choose (commonly 4 years).
Growth assumption
Share price compounds annually at your expected growth rate before each year’s vest is valued.
Tax estimate
Applies your federal marginal rate, optional state rate, and a simplified employee FICA rate to taxable equity income each year.
How to use this Share Incentive Plan calculator
Follow these steps before you treat a grant letter number as spendable income.
- Pick your equity typeChoose RSUs, ESOP shares, or stock options based on your grant paperwork.
- Enter shares and priceUse the grant share count and a current (or grant) fair market price in US dollars.
- Set growth and vestingPick a realistic annual growth rate and the number of years until the grant is fully vested.
- Choose tax ratesSelect a federal bracket, add your state rate if any, and toggle FICA for a fuller paycheck-style estimate.
- Review the projectionCompare gross vs after-tax totals and scan the year-by-year table for vesting cash-flow planning.
Share Incentive Plan rules (US overview)
US equity plans are governed by your employer’s plan documents, the IRS, and (for public companies) SEC rules. These points cover what employees ask about most often when using a Share Incentive Plan calculator.
Grant vs vest vs exercise
A grant awards the right to shares later. Vesting makes RSUs deliverable (and usually taxable). Options typically require exercise after vesting to buy shares at the strike price.
Ordinary income timing
RSU FMV at vest and NSO spreads at exercise are generally ordinary income, often reported on Form W-2 with payroll withholding.
Capital gains after delivery
After you own shares, later price moves can create capital gain or loss when you sell. Holding periods affect short-term vs long-term rates.
ESPP is related but different
Employee Stock Purchase Plans let you buy stock at a discount via payroll. ESPP purchase limits and qualifying disposition rules are separate from RSU/option grants.
Forfeiture and leaving
Unvested awards are often forfeited if you leave. Some plans accelerate on change-in-control — check your agreement.
ISO / AMT caution
Incentive stock options can trigger Alternative Minimum Tax even when no regular tax is due at exercise. This calculator’s options mode is an NSO-style spread estimate, not a full AMT engine.
Accuracy of the results
Results are educational projections for US employees — not personalized tax, legal, or investment advice.
What it models well
- Equal-tranche vesting over 1–5 years
- Compound share-price growth assumptions
- Combined federal + state + simplified FICA rates
- NSO-style option spreads (FMV − strike)
What can change the real outcome
- Cliffs, double-trigger RSUs, or irregular vesting schedules
- ISO AMT, NIIT, Additional Medicare Tax, and Social Security wage base
- Actual withholding vs year-end true-up
- State of residence and city taxes
- Share price volatility unlike a smooth growth path
Confirm details with your plan administrator, Form W-2 / 3921 / 3922 materials, and a qualified US tax professional when decisions matter.
How to calculate short term incentive plan
A Short-Term Incentive Plan (STIP) is usually an annual cash bonus, separate from a Share Incentive Plan. Use STIP math for bonus targets; use this page’s calculator for equity grants.
Target bonus
Target STIP = eligible salary × target bonus %
Example: $100,000 × 15% = $15,000 target.
Performance factors
Multiply by company / team / individual factors, or use a weighted scorecard (target × weight × achievement), then prorate eligibility and apply any cap.
Share Incentive Plan calculator FAQs
What is a Share Incentive Plan in the US?
It is an employer equity program — commonly RSUs, ESOP shares, or stock options — that gives employees a stake in company ownership subject to vesting and tax rules.
How does this Share Incentive Plan calculator work?
It assumes equal annual vesting, grows the share price each year, values each vest (or option spread), applies your tax rates, and sums after-tax proceeds across the vesting period.
Are RSUs taxed when they vest?
Generally yes — the fair market value of vested RSUs is ordinary income for US federal tax purposes, often with payroll tax withholding.
Does this include state tax?
Yes — enter your estimated state income tax rate, or 0 if you live in a state without wage income tax.
Is a STIP the same as a SIP?
No. STIP usually means a short-term cash bonus plan. A Share Incentive Plan refers to equity awards. See How to calculate short term incentive plan.
Does this tool replace a CPA?
No. It is an educational estimate. Complex ISO/AMT, multi-state, and sale timing questions need a qualified professional.