Stock Options Calculator
Estimate exercise costs for incentive and nonqualified stock options, including a simplified alternative minimum tax calculation for ISOs.
For a single filer with $200,000 of other income, exercising 10,000 ISOs at a $2 strike and $20 fair market value creates a $180,000 spread. This simplified 2026 model estimates $39,548 of AMT, in addition to the $20,000 purchase cost, assuming the shares are held long enough to qualify. AMT is federal, so the state rate does not change it.
The AMT line moves with your salary
| Other income | ISOs before AMT | AMT on 10,000 ISOs | Tax on 10,000 NSOs |
|---|---|---|---|
| $150,000 | 1,957 | $37,640 | $67,130 |
| $200,000 | 1,743 | $39,548 | $72,630 |
| $300,000 | 2,827 | $36,148 | $76,230 |
| $500,000 | 3,737 | $47,348 | $76,696 |
Budget for exercise cost and tax separately
The strike price is cash paid to buy the shares. Tax is an additional expense, and private shares may not be sellable when the bill is due. Check the grant, exercise deadline, current valuation and available liquidity before acting.
For a typical NSO, compensation included at exercise adds to regular tax basis. A later sale creates gain or loss relative to that basis. ISOs can have different regular-tax and AMT bases, so keep exercise records even after paying AMT.
Compare a smaller exercise with waiting or selling when permitted. A tax advantage is only one input; concentration, price declines and an inability to sell can outweigh it.
Sale results use simplified capital-gains and investment-tax calculations. They do not fully reconcile exercise-year AMT with a later sale or model every disqualifying-sale outcome. Use a complete tax projection before relying on the estimated proceeds.