Should I exercise my 'in-the-money' stock options?

When your employee stock options become 'in-the-money', where the current price is greater than the strike price, you can choose from one of three basic sell strategies: Exercise your options, then hold the stock for sale at a later date (exercise and hold); hold your options and exercise them later (defer exercise); or exercise your options and immediately sell the stock (exercise and sell). This calculator will help you decide which choice will likely maximize your after-tax profits.
Stock Option Assumptions
Years until option expiration date 
Total number of options 
Current price (per share) ($) 
Strike (grant) price (per share) ($) 
Anticipated annual return on stock (%)help
Annual dividends (per share) ($) 
Taxation And Investment Assumptions
Anticipated annual return on alternative investment (%)help
Marginal tax bracket (%)help
Long-term capital gains tax rate (%)