Intrinsic value is not full option value
Private-company liquidity, expiration, vesting, AMT, exercise timing and market risk can change the real value of options.
Example
If you hold 2,000 options with a 12 strike price and a 30 market price, gross intrinsic value is (30 - 12) x 2,000 = 36,000. With a 35% estimated tax rate, the simplified after-tax estimate is 23,400.
How to use the result
Use the result to understand the spread between strike and market price. Before exercising, check expiration dates, vesting, liquidity, tax treatment and whether shares can actually be sold.
Limitations
This is not tax, legal or investment advice. It does not value time value, volatility, private-company discounts, AMT, country-specific tax rules or employer plan restrictions.
Last reviewed: 2026-05-17