ESPP Calculator

A lookback discounts the purchase off the lower of the offering-date price and the purchase-date price, which increases your return when the stock has risen during the offering period.

A qualifying sale, held more than one year from purchase and two years from the offering date, gets favorable tax treatment on part of the gain. A disqualifying sale taxes more of the discount as ordinary income.

Selling right away locks in the discount but forfeits qualifying treatment, while holding adds tax benefits and concentration risk. The right choice depends on your taxes and risk tolerance.

No. It is a general estimate and is not investment, tax, or financial advice. Review your specific plan and tax situation with a professional.

An Employee Stock Purchase Plan (ESPP) is a workplace benefit that lets you buy your company's stock at a discounted price, typically 10% to 15% below the market price.

You pay tax when you sell the shares. The discount is usually taxed as ordinary income in the year of the sale, and any additional gain is taxed as a short- or long-term capital gain depending on how long you held the shares.

No. Some plans only offer a fixed discount off the purchase-date price with no lookback. Check your plan document to see exactly how it works.