How much are your stock options worth? Unlike restricted stock (RSU), stock options give you the right to buy the company's shares at a fixed price (the strike): they have value only if the market price exceeds the strike. This calculator estimates the gross and net gain, the intrinsic value, the cost to exercise them and whether they are in the money or out of the money. It is the essential tool for those who receive options as part of their compensation, typical of tech companies and startups.

What stock options are

Stock options are the right to buy a certain number of the company's shares at a preset price, the strike (or exercise price), within a certain period. If you work at a company with a strike of €10 and the share is worth €30 today, exercising the option you pay €10 and get a €30 share: a gain of €20 per option. Unlike RSU (free shares), with options you must buy at the exercise price: the value is in the difference (spread) between the market price and the strike.

Strike, current price and intrinsic value

The intrinsic value of an option is the difference between the current price of the share and the strike, if positive. With a strike of €10 and a share at €30, the intrinsic value is €20 per option. If the share is worth less than the strike, the intrinsic value is zero: it is not convenient to exercise the option (you would buy at 10 something worth less). The intrinsic value is the "safe" part of an option's value; there is also a time value, linked to the possibility that the price rises before expiry.

In the money, at the money, out of the money

These expressions describe the position of the option relative to the strike. In the money: the current price is above the strike, the option has intrinsic value and it is worth exercising. At the money: price equal to the strike, zero intrinsic value. Out of the money: price below the strike, the option has no intrinsic value today (but it could have it in the future if the price rises). The calculator tells you immediately which situation you are in.

How the calculator works

Enter the number of options, the exercise price (strike), the current price of the share, the vested percentage and your estimated tax rate. The calculator determines the vested options, the intrinsic value per option, the gross gain (the spread), the cost to exercise them and the net gain after taxes. The verdict tells you whether you are in or out of the money. It is the quickest way to understand the real value of your options today.

The values you need

The number of options is how many were granted to you. The exercise price (strike) is what you pay per share when exercising: it is set at the time of the grant. The current price is the market value of one share today. The vested percentage is the share of options you have already vested according to the vesting. The tax rate is the one you estimate to pay on the gain: it depends on the country and the type of option.

The vested options

The vested options are those you actually have the right to exercise, based on the vesting: number granted times the vested percentage. With 5,000 options and a vesting at 100%, they are 5,000; halfway through the vesting, 2,500. Only the vested options count in the calculation of the current value, because those not yet vested are not exercisable and you lose them if you leave the company. It is the first step to understand how much your package is really worth today.

The gross gain

The gross gain is the total spread: vested options times the intrinsic value per option. With 5,000 vested options and a spread of €20 (share 30, strike 10), the gross gain is €100,000. It is the value you would realize by exercising and selling immediately, before taxes. Beware: it depends on the share price, which fluctuates; the gain can grow or go to zero if the price falls below the strike. It is the number that measures the potential benefit of your options.

The exercise cost

The exercise cost is how much you must pay to buy the shares: vested options times the strike. On 5,000 options with a strike of €10, you need €50,000 to exercise them all. It is an often underestimated aspect: to cash in the gain you must first have the liquidity to exercise (unless a "cashless" exercise sells part of the shares to cover the cost). Knowing the exercise cost is essential for planning, because not everyone has tens of thousands of euros ready to invest.

The net gain

The estimated net gain is how much is left after taxes: gross gain minus taxes. On €100,000 gross with a 26% rate, the net is €74,000. It is the number that reflects the true economic benefit of your options, but the taxation of stock options is complex and varies a lot by country and type of option: in many systems the spread at exercise is taxed as income, and the appreciation after sale as capital gain. This calculation uses a single rate as an estimate.

In, at and out of the money

How to read the position of the option relative to the strike:

Only in the money does exercising make immediate economic sense; out of the money it is better to wait (if there is still time).

Effect of the share price on the value

With a strike of €10, how the intrinsic value per option varies:

The value of the options rises linearly with the share price, but only above the strike: it is the leverage of stock options.

Stock options, RSU and ESPP

Options are one of the forms of equity. How they compare:

Options have a higher gain potential but have value only if the price exceeds the strike; RSU always have value if the share is worth more than zero.

Why options are risky

Stock options are riskier than RSU because their value depends entirely on the price exceeding the strike. If the company does not grow or the price falls, the options can be worth zero (out of the money) even after working years to vest them. There is also the liquidity risk (capital is needed to exercise) and the concentration risk (too much wealth tied to a single company). The gain potential is high, but it must be balanced with these real risks.

What the calculation does not consider

The calculator estimates the intrinsic value at the current date: it does not calculate the time value (the probability that the price rises before expiry, which models like Black-Scholes estimate). It uses a single rate: the real taxation of stock options varies a lot by country and type (in many systems the spread is taxed as income at exercise and the subsequent appreciation as capital gain). It does not consider options not yet vested, expiry, nor transaction costs. It is an informational estimate, not tax advice.

Common mistakes

• Confusing stock options with RSU: options require buying at the strike, RSU are free.
• Forgetting the exercise cost: liquidity is needed to buy the shares.
• Ignoring taxes: the spread at exercise is often taxed as income.
• Counting options not yet vested as if they were already yours.
• Underestimating the risk: out-of-the-money options can be worth zero.

How to use the calculator

Enter the number of options, the strike, the current price, the vested percentage and the rate. Read the vested options, the intrinsic value, the gross gain, the exercise cost and the net gain. Try different share prices to see how the value changes and when the options become in the money. It is the quickest way to understand the real value of your options package and plan when and how to exercise them.

Practical example

You have 5,000 stock options with a strike of €10, the share is worth €30 today, they are 100% vested and you estimate a 26% rate. The result: 5,000 vested options, an intrinsic value of €20 per option, a gross gain of €100,000, an exercise cost of €50,000 and a net gain of €74,000, with the verdict "in the money: the options have value". To cash in you must first have €50,000 to exercise (or use a cashless exercise). Enter your numbers for your real situation. The calculation estimates the intrinsic value with a single rate and does not include the time value nor specific tax regimes. It is an informational estimate, not tax advice.

Frequently asked questions

What are stock options?

They are the right to buy a certain number of the company's shares at a fixed price (the strike), within a certain period. They have value only if the market price exceeds the strike: the gain is the difference (spread) between the current price and the strike.

What is the difference between stock options and RSU?

Stock options give the right to buy the shares at the strike: they have value only if the price exceeds the strike. RSU are free shares at vesting, always have value if the share is worth more than zero. Options have more potential but more risk.

What is the strike (exercise price)?

It is the fixed price at which you have the right to buy the shares, set at the time of the grant. With a strike of €10 and a share at €30, exercising you pay €10 for a €30 share, gaining €20 per option.

What do in the money and out of the money mean?

In the money: the current price is above the strike, the option has intrinsic value. At the money: price equal to the strike. Out of the money: price below the strike, no intrinsic value today. Only in the money is exercising worthwhile immediately.

How is the value of stock options calculated?

Intrinsic value per option = current price − strike (if positive). Gross gain = vested options × intrinsic value. On 5,000 options, strike 10, share 30: gross gain = 5,000 × 20 = €100,000.

What is the exercise cost?

It is how much you must pay to buy the shares by exercising: vested options × strike. On 5,000 options with a strike of €10, you need €50,000. To cash in the gain you must first have this liquidity (or use a cashless exercise).

How are stock options taxed?

The taxation is complex and varies by country and type of option. In many systems the spread at exercise (price − strike) is taxed as employment income, and the subsequent appreciation after sale as capital gain. The calculator uses a single rate as an estimate.

What happens to the options if I leave the company?

You lose the options not yet vested. The vested ones usually must be exercised within a short period after leaving (often 90 days), otherwise they expire. Check the rules of your plan: it is a critical aspect often overlooked.

What is a cashless exercise?

It is an exercise in which you do not need your own liquidity: you exercise the options and immediately sell enough shares to cover the exercise cost and taxes, cashing in the net difference. Useful if you do not have the capital to exercise and keep the shares.

Why are stock options risky?

Because their value depends entirely on the price exceeding the strike. If the company does not grow, the options can be worth zero even after working years to vest them. There is also liquidity risk (capital is needed to exercise) and concentration risk.

Does the calculation include the time value?

No, it estimates only the intrinsic value at the current date (price − strike). The time value, linked to the probability that the price rises before expiry, requires models like Black-Scholes and is not included in this estimate.

Does it work for any country and currency?

Yes, the intrinsic value calculation is universal and uses the values and currency you enter. Beware though: the taxation of stock options varies a lot by country, so the rate should be adapted to your local regulation.

Updated July 2026