Startup Equity ISO vs NSO & AMT Modeler

Startup Stock Options & AMT Tax Calculator

Estimate cash required to exercise, potential Alternative Minimum Tax (AMT) on paper gains, and net profit at IPO/Exit.

Option Grant Type

Number of Vested Options to Exercise

Strike Price ($)

Current 409A FMV ($)

Expected Exit / IPO Share Price ($)

Regular Annual Household Income ($)

Tax Filing Status

Cash to Exercise

$50,000

25,000 shares @ $2.00

Estimated AMT Tax Due

$38,680

Due in Year of Exercise

Net Exit Payout (After Tax)

$846,320

Net Profit at $45/share

Total Upfront Cash Required to Exercise & Hold:

Strike Cost ($50k) + Estimated Tax Liability ($38.6k)

$88,680

Gross Value vs Strike vs Taxes vs Net

Event	Incentive Stock Options (ISO)	Non-Qualified Stock Options (NSO)
Tax at Grant?	No Tax	No Tax
Tax at Exercise?	AMT Spread Trigger (26% - 28%)	Ordinary Income Tax (Up to 37% + FICA)
Tax at Sale / Exit?	Long-Term Cap Gains (20%) if held > 1 yr	Cap Gains only on growth above exercise FMV