Question 1

How do I calculate the value of my stock options?

Accepted Answer

The value of your stock options is the spread between the current fair market value (409A) per share and your strike (exercise) price, multiplied by the number of shares you can exercise. For example, 10,000 options with a $1 strike price and a $5 current value are worth (5 - 1) × 10,000 = $40,000 before taxes. Future value depends on the company's growth and exit valuation.

Question 2

What is the difference between vested and unvested options?

Accepted Answer

Vested options are yours to exercise — you have earned them according to your vesting schedule (typically 4 years with a 1-year cliff). Unvested options you will earn in the future if you stay at the company. You can only exercise (buy) vested shares, so your exercisable value today is based on vested shares, while your total potential value at exit includes all granted shares once fully vested.

Question 3

How much are startup stock options worth at exit?

Accepted Answer

At an exit (IPO or acquisition), your options are worth the exit share price minus your strike price, times your vested shares. Most startups dilute shares 20-30% per funding round, so future rounds reduce your per-share value. This calculator projects future value using your expected growth rate, years to exit, and a dilution haircut to give realistic downside, base, and upside scenarios.

Question 4

What is a good amount of stock options in a job offer?

Accepted Answer

A useful benchmark is the ratio of your equity's potential value to your annual salary. If your options could be worth more than one year's salary at a reasonable exit, that is a strong equity package. Late-stage companies grant fewer shares (lower risk, lower upside); early-stage companies grant more (higher risk, higher upside). The Premium Report compares your grant to typical benchmarks for your role and stage.

What Are Your Stock Options Actually Worth?

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