Equity compensation such as restricted stock units (RSUs) and stock options is a key component of many compensation packages, particularly in the US and UK tech and finance sectors. Understanding the potential value of these grants is essential for making informed career decisions or managing compensation strategies.
This calculator helps candidates and HR professionals estimate the annualized value of equity compensation. Whether you're evaluating a job offer, planning your financial future, or structuring employee incentives, this tool provides a clear picture of your or your employees' total compensation.
How the calculation works
The calculator estimates the annual value of equity compensation by factoring in the grant size, vesting schedule, and current stock price (for RSUs). For RSUs, the value is calculated as (Number of Shares × Current Stock Price) divided by the vesting period in years. For stock options, the value is based on the strike price, current stock price, and the number of options, also adjusted by the vesting period. This provides a simplified estimate of the annual financial benefit of the equity grant.
For US and UK contexts, the calculation assumes standard 4-year vesting with a 1-year cliff, unless otherwise specified by the user. The tool does not account for taxes, volatility, or potential stock price changes over time, which may affect the actual value of the grant.
How to use this calculator
- Select the type of equity compensation: RSUs or Stock Options.
- Enter the number of shares or options granted.
- Input the current stock price (for RSUs) or strike price (for options).
- Set the vesting period, including any cliff periods.
- Review your estimated annual value and understand how the calculation was made.