How it works
ESOP Calculator India
Employee Stock Options (ESOPs) are a key component of compensation at Indian startups. They give employees the right to buy company shares at a fixed exercise price (strike price) after a vesting period. Understanding the true value of your ESOPs — and the tax implications — is essential before you decide to exercise them.
This calculator estimates the current value of your vested options, the exercise cost to acquire them, and the tax you would owe under Section 17(2) of the Income Tax Act. The perquisite value (fair market value minus exercise price) is taxed as salary income at your applicable slab rate, with additional surcharge and cess.
You can also model exit scenarios to see what your ESOPs could be worth at future valuations. Keep in mind that ESOPs are not liquid until the company is listed or acquired — the value shown is theoretical until an actual exit event occurs.