Annual Stock Option Grants Calculator (Canadian)

Many companies issue annual stock option grants to their employees. Receiving a stream of stock options over a period of years can be an incredible benefit. Use this calculator to project how much a series of annual stock option grants could be worth to you.

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For more information about these financial calculators please visit: Financial Calculators from KJE Computer Solutions, Inc.

By changing any value in the following form fields, calculated values are immediately provided for displayed output values. Click the view report button to see all of your results.

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Annual Stock Option Grants Calculator (Canadian)

*indicates required.

Annual Stock Option Grants Inputs:

Current stock price:*This entry is required.Enter an amount between $1.00 and $1,000.00

Annual stock option grant:*This entry is required.Enter an amount between 0 and 10,000

Stock appreciates at:*This entry is required.Enter an amount between 0% and 20%

Number of years:*This entry is required.Enter an amount between 3 and 25

Total options granted:

Average strike price:

**FIG_GRAPHTITLE** Column Graph: Please use the calculator's report to see detailed calculation results in tabular form.

Stock Options Final Year Values

**FIG_GRAPHTITLE** Line Graph: Please use the calculator's report to see detailed calculation results in tabular form.

After KJE3 years at KJE2 options are worth KJE1

Definitions

Current stock price

Current stock price. For this calculator, the current stock price is assumed to be the strike price. The strike price is the stock price that your options were issued at. The underlying stock price must exceed the strike price for your options to have any value.

Stock appreciates at

This is the annual rate of return you expect from the stock underlying your options. Thanks to the leveraged nature of your stock options, once the underlying stock value has exceeded your strike price, the value of your options will increase at an accelerated rate. The actual rate of return is largely dependent on the type of investments you select. For example, the total return including dividends of the S&P/TSX Composite Index for the 10 year period from December 31, 2013 through December 31, 2023 was 8.6% (source www.spglobal.com). Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.

Annual stock option grant

This is the number of stock options you receive each year. The strike price for each year will be calculated as the projected stock price.

Number of years

The number of years you expect to hold these options. This can be any number from three to twenty-five.

Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.