RSU Calculator
RSUs (Restricted Stock Units) are a form of equity compensation where you receive company stock that vests over time. Unlike cash, their value depends on the stock price when they vest, which introduces both opportunity and risk.
Total Compensation Calculator
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Effective amount: $0
RSUs
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Total: 100%
Stock Options
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Year 1 Total Compensation
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Year 2 Total Compensation
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Year 3 Total Compensation
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Year 4 Total Compensation
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Year 5 Total Compensation
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How RSU Vesting Works
Most RSU grants follow a 4-year vesting schedule with a 1-year cliff:
- Cliff: You receive nothing until you complete 1 year of employment
- After cliff: 25% vests immediately, then monthly or quarterly thereafter
- Full vesting: After 4 years, all RSUs have vested
Use the calculator above to input your vesting schedule and see exactly what you'll receive each year.
Example Scenario
You receive 1,000 RSUs at $100/share ($100,000 grant value) with standard 4-year vesting:
- Year 1: 250 shares vest. If stock is now $120, value = $30,000
- Year 2: 250 shares vest. If stock drops to $80, value = $20,000
- Year 3-4: Remaining shares vest at whatever the stock price is
This is why the "grant value" in your offer letter may differ significantly from what you actually receive.
Common Mistakes
- Assuming RSUs are "free money" — their value depends on stock performance
- Forgetting the cliff — if you leave before 1 year, you get nothing
- Not planning for taxes — RSUs are taxed as income when they vest
- Ignoring refresher grants — many companies give additional grants after Year 1