ESPP Calculator
Estimate the gain from an employee stock purchase plan (ESPP) with a discount and lookback provision, and your return on the money contributed.
For information and education only — not financial advice. Results are estimates based on the numbers you enter; check important decisions with a qualified professional.
How to use
- 1Enter your contribution for the offering period and the plan discount.
- 2Enter the share price at the start and end of the period, and whether the plan has a lookback.
How it's calculated
Purchase price = (lower of start and end price if lookback, else end price) × (1 − discount). Shares = contribution ÷ purchase price. Gain if sold immediately = shares × end price − contribution.
Frequently asked questions
What is a lookback?
The discount applies to the lower of the price at the start or end of the offering period, which can make the gain much larger if the stock rose.
How is ESPP taxed?
It depends on whether it's a qualifying or disqualifying disposition. Part of the gain is ordinary income; check your plan documents and a tax adviser.
Should I sell right away?
Many people sell immediately to lock in the discount and avoid concentration risk in their employer's stock.