Enter the grant and schedule — see each vest in shares, taxes, and take-home dollars.
Each vest, in your account
—
| Value per vest (gross) | — |
| Withheld for taxes per vest | — |
| Per year, after withholding | — |
| Whole grant at today's price | — |
Even splits assumed (no cliff modeled). Withholding ≠ final tax — high earners often owe more at filing.
The RSU math
per vest = grant value × (1 + stock change) ÷ total vests
take-home = per vest × (1 − withholding rate)
RSUs are deferred cash denominated in shares: the grant's headline number assumes the grant-day price, every vest reprices at that day's market, and taxes treat it all as salary. Once you see it as "salary paid quarterly in variable-value chunks," every planning decision gets simpler.
A worked example
An $80,000 grant over 4 years, quarterly: 16 vests of $5,000 at the grant price. At 30% withholding, each vest nets ~$3,500 — $14,000 a year of extra take-home. If the stock is up 40% by year two, those same vests net $4,900 each; down 40%, $2,100. That swing is why offer-letter comparisons should count RSUs at grant value with a haircut, not at hoped-for prices.
Offer-letter usage
Comparing a big-tech offer against a cash-heavy one? Feed each year's after-withholding RSU value into the total compensation calculator (or the offer comparison) as bonus-like income — and note year 5: when the grant ends, so does that income unless refreshers arrive. Ask about refresh policy; it's the difference between a plateau and a cliff.
Frequently asked questions
How are RSUs taxed?
As ordinary income on each vest date, at the share price that day — exactly like a cash bonus paid in stock. Employers typically withhold by selling a chunk of the vesting shares (22% federal default, plus FICA and state), which is why fewer shares land than vested.
Why did I receive fewer shares than vested?
Sell-to-cover: if 100 shares vest and combined withholding is ~30%, roughly 30 are sold for taxes and ~70 hit your account. The calculator shows both numbers so vest-day statements stop being a surprise.
Should I sell RSUs when they vest?
Tax-wise, vest day is a clean exit: the shares' cost basis IS the vest price, so selling immediately adds no extra tax. Holding is simply choosing to invest that cash in your employer's stock — sensible only if you'd buy it with a cash bonus. Many planners recommend sell-and-diversify.
Is the 22% withholding enough?
Often not — if your total income puts you in the 24%+ bracket, the default supplemental withholding under-collects and April surprises follow. The W-4 extra withholding helper covers the gap; big grants may warrant a tax pro.