RSU Vesting + Cliff Trap Calculator
$240K RSU grant looks like $60K/year. Leave at month 11 with a 1-year cliff and you get $0. Vest, dilute, exit — see what each year actually pays out.
How vesting actually works
Standard tech RSU schedule:
- Year 1 cliff (25% drop): Nothing vests until your 1-year anniversary. On day 365, the cliff portion vests in one lump (25% of the grant for a 4-year schedule).
- Quarterly thereafter: The remaining 75% vests in 12 equal quarterly chunks across years 2-4 (6.25% per quarter).
- Tax at vest: Each vest creates W-2 income equal to the share count × current stock price. The company withholds shares to cover taxes (usually too few — plan to owe more in April).
The cliff trap is real: about 10-15% of new tech hires leave inside year 1, forfeiting their entire cliff. On a $240K grant that's $60K of forfeit value — often more than the sign-on bonus they were paid.
Math runs locally. Inputs never leave your browser. Source on github.
Real-world scenarios
- Tech TC Breakdown — how RSU fits with base, bonus, sign-on, and 401(k) match in your full offer.
- Job Offer Comparison — compare two full offers including equity timing and exit-year impact.
- Opportunity Cost — what your unvested equity is worth as forgone investment if you leave early.
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