RSU Vesting Calculator

What Is RSU Vesting?

Restricted stock units (RSUs) are company shares a company promises to deliver on a schedule if you stay employed. Vesting is the point shares convert from a promise to actual stock you own. The standard schedule at most US public tech companies is 4 years with a 1-year cliff: 25% vests at the 12-month mark, then roughly 1/48 of the grant vests each month for the next 36 months.

How the Standard Schedule Works

The 1-year cliff means nothing vests until the employee completes the first 12 months — that single vesting event delivers 25% of the grant at once. After the cliff, monthly vests begin. Some companies use quarterly vests of 6.25% per quarter instead. Always check your grant agreement for the exact cadence, because the dollar-per-month number depends on it.

Taxes on RSU Vesting

RSUs are taxed as ordinary income the day they vest, based on the share price at vest. Employers typically withhold 22% federal (or 37% above $1M annual supplemental income), plus state and FICA. If you are in a higher tax bracket, the 22% default withholding is not enough and you may owe at tax time. Selling immediately at vest avoids extra capital gains risk, but creates a concentration question worth discussing with an advisor.

Planning and Refresh Grants

Many companies add annual refresh grants on top of the initial grant, so total unvested RSUs rise each year you stay. When evaluating a job change, compare unvested value at your current employer against new-job grant plus signing bonus. This calculator is informational only and does not include taxes, withholding, or stock price changes — use it to visualize your schedule, not to plan taxes.