Calculator · Stage 3

RSU Sell vs Hold Calculator

Calculate the after-tax mathematical difference between holding your vested company stock versus selling it immediately to invest in a diversified index fund.

RSU Vest Details

Total Vest Value ($)

Pre-tax value of shares vesting

Ordinary Income Tax Bracket (%)

State Income Tax (%)

Capital Gains Tax Bracket (%)

Federal + State Cap Gains rate

Growth Assumptions

Expected Company Stock Growth (%)

Expected Index Fund Growth (%)

Holding Period (Years)

—

The Math Breakdown

1. The Vesting Event (Taxed as W-2 Income)

RSUs are taxed as ordinary income when they vest, regardless of whether you sell or hold.

Gross Vest Value—

Taxes Withheld/Owed—

Actual Investable Amount (Cost Basis)—

Scenario A: Hold Company Stock for Years

Future Gross Value—

Capital Gains Tax on Growth—

Net After-Tax Proceeds—

Scenario B: Sell Immediately & Buy Index Fund

Taxes on Immediate Sale$0 (No capital gain yet)

Future Gross Value—

Capital Gains Tax on Growth—

Net After-Tax Proceeds—

The Golden Rule of RSUs:

If you were handed $X in cash today, would you use it to buy your company's stock? If the answer is no, you should sell your RSUs as soon as they vest. There is no tax advantage to holding.