Employee Stock Option Value Calculator
Estimate what your startup option grant is worth today and at a plausible exit. Strike, current 409A, shares, vesting, exit valuation, and expected future dilution.
The formula
Paper value equals shares times (409A minus strike). Exit ownership equals shares divided by shares outstanding, times (1 minus future dilution). Exit value gross equals exit valuation times exit ownership; net subtracts total strike cost.
FAQ
Does this include taxes?+
No. ISOs, NSOs, AMT, ordinary income vs long-term capital gains, and state taxes are meaningful. Talk to a CPA before exercising.
What is FMV / 409A?+
The fair market value set by a third-party appraisal. Strike must equal or exceed FMV at grant.
Why apply future dilution?+
Every future round will reduce your ownership percentage. Investors dilute-proof themselves; employees do not.
Is early exercise worth it?+
Sometimes. It starts the long-term capital gains clock and can reduce AMT if done at grant. It also puts real cash at risk in a company that may fail.
What if my strike is above FMV?+
Paper value today is zero. The upside is only at exit above strike per share.