The concept
How grant, cliff and vesting period interact
A stock grant or RSU award typically vests over a period of years rather than all at once. A common structure includes a cliff — an initial period (often one year) during which no shares vest at all — followed by the remaining shares vesting gradually, often monthly or quarterly, until the full grant is vested.
This calculator models the common simplified case: a single cliff followed by even, straight-line vesting across the remaining period. Many real grants vest exactly this way, but some use different schedules (for example, a larger portion vesting at the cliff itself), so check your specific grant agreement for the exact terms.
The method
How the calculation works
If the time elapsed is less than the cliff period, zero shares are considered vested. Otherwise, the vested fraction is the time elapsed divided by the total vesting period, capped at 100%. That fraction is applied to the total shares granted, then multiplied by the current share price to estimate vested value.
Before the cliff date no shares are vested. After the cliff, shares are assumed to vest in equal amounts spread evenly across the full vesting period.
Worked example
A neutral example
For a 4,000-share grant with a 4-year vesting period, a 1-year cliff, a $25 current share price and 2 years elapsed, the calculator estimates the value of shares vested under that exact schedule.
This example explains the method. It does not recommend a financial action or predict an outcome.
Frequently asked
Stock Grant & RSU Vesting Calculator questions
What happens if I leave before the cliff date?+
Under most standard grant agreements, no shares have vested yet if you leave before the cliff, so unvested shares are typically forfeited. Confirm the exact terms in your grant agreement, since forfeiture rules vary by employer.
Does this calculator account for taxes owed on vested shares?+
No. Vesting is often a taxable event (the value of newly vested shares is typically treated as ordinary income), and tax treatment varies by country, grant type and employer withholding practices. This calculator estimates gross share value only.
Can I model an ESPP (employee stock purchase plan) with this calculator?+
Not directly — an ESPP typically involves a purchase discount and sometimes a lookback provision rather than a multi-year vesting schedule. This calculator is built for grants and RSUs that vest over time based on a cliff and vesting period.