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Should I Exercise My "In-The-Money" Stock Options?

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When your employee stock options are "in-the-money" (that is, the stock price is greater than your grant price), you can choose one of three basic sell strategies: Exercise your options, then hold the stock for sale at a later date (exercise and hold); hold your options and exercise them later (defer exercise); or exercise your options and immediately sell the stock (exercise and sell). This calculator will help you compare potential consequences of each choice.

Stock Option Assumptions	Input
Years until option expiration date: (0-20)	(0-20)
Total number of options
Current price: (per share)	$
Strike (grant) price: (per share)	$
Anticipated annual return on stock: (%)	(0-12)%
Annual dividends: (per share)	$

Taxation And Investment Assumptions	Input
Anticipated annual return on alternative investment: (%)	(0-12)%
Marginal tax bracket: (%)	(0-50)%
Long-term capital gains tax rate: (%)	(0-50)%

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Alternatives (Net Future Value)
Exercise and hold
Exercise and sell
Defer exercise

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  Loan Type	Today	Last Week
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  30 Year Fixed Jumbo	7.50%	7.47%
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