Employee Stock Purchase Plan(ESPP) Calculator

It is an online tool for tax calculation and used to determine your net gain after tax value on your ESPP based on grant date, exercise date, shares , Commission and tax details.

Discount
Price
  

Results

Cost Basis ($) = 1,440.00

Disposition/
Capital Gains
Disqualifying/
STCG
Disqualifying/
LTCG
Qualifying/
LTCG
Ordinary Income ($)360.00360.00160.00
Capital Gains ($)200.00200.00400.00
Income Tax ($)43.2043.2019.20
Capital Gains Tax ($)24.0020.0040.00
Total Tax ($)67.2063.2059.20
Net Gain ($ / %)492.80
(34.22%)
496.80
(34.5%)
500.80
(34.78%)

**STCG - Short Term Capital Gains

**LTCG - Long Term Capital Gains

**FMV - Fair Market Value

Employee Stock Purchase Plan (ESPP) Formula

An employee stock purchase plan (ESPP) is a company-run program in which participating employees can purchase company stock at a discounted price.

The majority of publicly disclosed ESPPs in the United States are tax-qualified plans that follow the rules of Section 423 of the IRC.

ESPPs are categorized in two ways: Qualified and Non-qualified.

1) Qualified plans require the approval of shareholders before implementation, and all plan participants have equal rights in the plan.

2) Non-qualified plans do not have the tax advantages of after-tax deductions that qualified plans do.