Stock Option Value Calculator
Calculate your ISO or NSO stock option spread, current and projected profit, break-even price, and exit scenarios.
ISO vs. NSO: Key Differences
Incentive Stock Options (ISO)
ISOs can only be granted to employees. They receive favorable tax treatment if you meet holding requirements: hold shares for at least 2 years from grant date and 1 year from exercise date. If you meet these, your entire gain is taxed as long-term capital gains — no ordinary income tax at exercise. However, the spread at exercise is an AMT preference item, which can trigger significant AMT liability in the year you exercise.
Non-Qualified Stock Options (NSO)
NSOs can be granted to employees, contractors, and board members. At exercise, the spread (FMV minus strike price) is taxed as ordinary income immediately — your employer withholds taxes just like wages. Any subsequent appreciation from your exercise FMV to your sale price is a capital gain (short- or long-term depending on your hold period).
Break-Even Price
The break-even price equals your strike price. Any FMV above strike means your options are "in the money." Options with a FMV below strike are "underwater" — exercising them would result in an immediate loss.
The Scenario Table
The 1x–10x scenario table shows your potential profit if the company FMV grows to multiples of today's price. This is speculative — future valuations are unknown.