Equity Offer Value Calculator

Work out equity offer value instantly with clear inputs, formula shown and shareable results.

About Equity Offer Value Calculator

An equity grant should be compared with cash on an annualised basis: intrinsic value divided by the vesting period. Intrinsic value is only the spread between fair value and strike, and the exercise cost is real cash you must find — often the largest practical obstacle.

Formulas

Intrinsic value

Intrinsic = Options x max(0, Fair value - Strike price)

Annualised

Annualised = Intrinsic value / Vesting years

Worked example

With the default values below, Equity Offer Value Calculator returns Annualised equity value of $165,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Options or RSUs granted: 12,000
Strike price per share: 40
Current fair value per share: 95
Vesting period: 4

Results

Annualised equity value: $165,000.00
Total intrinsic value at vest: $660,000.00
Cash needed to exercise in full: $480,000.00
Spread per share: $55.00

Step by step

1Values used
2Intrinsic value
3Annualised
4Annualised equity value= 165,000.00
5Total intrinsic value at vest= 660,000.00
6Cash needed to exercise in full= 480,000.00
7Spread per share= 55.00

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or fees or charges into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

What if the strike equals fair value?

Then the intrinsic value is zero today and the grant is a pure bet on future appreciation. Value it heavily discounted when comparing offers.

Are RSUs different from options?

Yes. RSUs have no strike price, so their value is the full share price and they retain value even if the price falls. They are far less risky than options.