RSU FIRE Calculator

See how RSU vests change your financial independence date, after tax, and how much company stock you would be holding.

Assumptions reviewed

years
$
$
$
$
$
%
%
years
% / yr
% / yr
% / yr
%
Early retirement
Financial independence at age
44 years old

Values are in today's dollars and assume the share price keeps pace with your expected return. Share prices can fall; consider the "without RSUs" age your floor.

With and without RSUs
With RSUsSalary savings onlyFIRE number
$0$500K$1M$1.5M$2M$2.5M3034384246505458FI at 44.0Age
Without RSUs
57.3 years old
RSUs bring FI forward by
13 years, 4 months
RSU value after tax each year
$60,000
Your FIRE number
$2,000,000
Company stock at FI
0%
Where your FIRE money comes from
Invested today: $200,000 (10%)Salary savings: $420,000 (21%)RSUs (after tax): $840,000 (41.9%)Growth: $542,989 (27.1%)
  • Invested today$200,00010%
  • Salary savings$420,00021%
  • RSUs (after tax)$840,00041.9%
  • Growth$542,98927.1%
Show the working
  1. FIRE number = $80,000 ÷ 4% = $2,000,000
  2. RSUs after tax = $100,000 × (1 − 40%) = $60,000 a year; 0% kept as company stock, the rest diversified
  3. Invest $90,000 a year in total until FI: 14 years (vs 27 years, 4 months on salary alone)

Runs entirely in your browser. Nothing you enter is uploaded.

Formula

RSU after tax = vest value × (1 − tax rate)Yearly investing = salary savings + RSU after taxFIRE number = retirement spending ÷ withdrawal rate

How it works

For many people in tech, restricted stock units are a large share of pay — sometimes more than salary. Yet most FIRE calculators only ask for a single savings number. This calculator treats RSUs separately: it taxes each vest, lets you choose how much company stock to keep, and compares your financial independence date with and without them.

RSUs are taxed as ordinary income on the day they vest, at the market value of the shares. Employers usually withhold only 22% for federal tax (37% above $1 million of supplemental pay), which is often less than you actually owe. Enter your full marginal rate — federal, state, Social Security and Medicare — to see what really reaches your portfolio.

The "without RSUs" line is a useful floor: it is when you would reach financial independence if the stock went nowhere or the grants stopped. The gap between the two lines is what your equity compensation is worth to your timeline.

Should you sell RSUs as soon as they vest?

A common way to think about it: if your employer paid you the same amount in cash, would you use it to buy company stock? If not, selling at vest and diversifying is consistent with that answer. Because RSUs are taxed at vest, selling immediately usually triggers little or no additional tax.

Holding concentrates your risk. Your salary, your unvested grants and your held shares all depend on one company. Set the "Share of vested stock you keep" above zero to see how concentrated your portfolio would become by the time you reach FI.

Planning around refreshers and vesting cliffs

Initial grants typically vest over four years. If you do not expect refreshers, set "Years you keep receiving RSUs" to the years left on your grant to see a more conservative date. Many people pursuing FIRE in tech treat the end of a grant as a natural moment to reassess, since leaving earlier means walking away from unvested shares.

Frequently asked questions

Are RSUs taxed twice?

No. They are taxed as income when they vest. If you hold the shares and later sell for more than the vest price, only that extra gain is taxed, as a capital gain. If you sell right away, there is usually little or no further tax.

What tax rate should I enter?

Your marginal rate on extra income: federal bracket, state income tax, plus 1.45% Medicare (and 6.2% Social Security if you are under the yearly wage base). For a high earner in California this can exceed 45%. The RSU tax calculator can estimate it.

Should I count unvested RSUs in my net worth?

Most FIRE planners do not, because you lose them if you leave. This calculator only counts shares as they vest.

What if my company stock grows faster than the market?

Set a higher company stock return and keep some shares to see the effect. Remember that single stocks can also fall sharply — model a pessimistic case too.

Sources

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