RSU Calculator
What a restricted stock grant is worth as it vests, and what reaches you after tax withholding.
Vesting schedule
| Month | Shares | Gross value | After withholding |
|---|---|---|---|
| 12 | 250 | $12,500 | $9,750 |
| 15 | 63 | $3,125 | $2,438 |
| 18 | 63 | $3,125 | $2,438 |
| 21 | 63 | $3,125 | $2,438 |
| 24 | 63 | $3,125 | $2,438 |
| 27 | 63 | $3,125 | $2,438 |
| 30 | 63 | $3,125 | $2,438 |
| 33 | 63 | $3,125 | $2,438 |
| 36 | 63 | $3,125 | $2,438 |
| 39 | 63 | $3,125 | $2,438 |
| 42 | 63 | $3,125 | $2,438 |
| 45 | 63 | $3,125 | $2,438 |
| 48 | 63 | $3,125 | $2,438 |
RSUs are taxed as ordinary income at vest on the full market value, and employers typically sell shares to cover it. The 22% default is the IRS flat supplemental withholding rate, which under-withholds for anyone whose marginal rate is higher, so a bill can arrive at filing time. Shares held after vesting are a normal investment, and any further gain or loss is a capital gain from the vest price.
Restricted stock units are taxed as ordinary income at vest on the full market value of the shares that day. The employer typically withholds shares to cover it, which is why a 1,000 share grant delivers fewer than 1,000 shares to your account. The amount taxed becomes your cost basis, so any later gain or loss is a separate capital gain from that price.
Frequently asked questions
When are RSUs taxed?
At vest, not at grant, and again on any gain if you sell later at a higher price. Vesting income appears on your W-2 as ordinary wages, and a sale on the same day usually produces close to zero additional capital gain.
Should I sell RSUs as they vest?
Selling at vest converts a concentrated position into cash at no additional tax cost, since the shares were already taxed at that value. Holding is economically the same decision as taking your salary in cash and using it to buy company stock, which concentrates your job and your savings in one company.
What is a cliff?
A period, usually one year, before any shares vest. A typical four-year grant with a one-year cliff vests 25% at month twelve and the remainder in quarterly or monthly increments after that. Leaving before the cliff generally forfeits everything.
How are RSUs different from stock options?
RSUs are shares granted outright once vested and retain value as long as the stock does. Options give the right to buy at a strike price and are worthless if the stock trades below it, which makes them higher risk and higher leverage.
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Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.