Plan your Runway ISO exercise
Calculator · free · no signup · pre-IPORunway is pre-IPO. Plan your AMT impact at any valuation: current 409A, expected IPO price, or post-IPO scenarios.
Beta · invite-only · AlphaLatitude Inc. · Free Tools
Your grant
Seeded from secondary-market data, as of Jun 9, 2026
Tax inputs
Grant timeline
Net final value at year 3 sale — optimized plan
$79,705
After-tax dollars at end of year 3, net of all federal + state taxes through the sale.
This year: exercise 3,334 shares (of 10,000 total).
= gross gain at sale − federal + state LTCG − AMT premium above baseline regular tax (time-valued)
AMT premium for exercising: $0 (on top of $228,434 regular tax across the horizon)
Optimized plan keeps $587 more than lump-sum.
Federal AMT crossover this year: 5,775 shares ($57,238 bargain element). Above that, each additional share this year adds federal AMT.
Estimates only. Not financial advice.
Net final value by year
Running tally: NTV from shares exercised through year y, minus AMT premium paid through year y. The last year matches the plan's headline NTV. Hover a year for plan totals.
Optimized exercise schedule
You pay the higher of Regular tax and Tentative AMT per jurisdiction, then subtract Credit recovered. The result is Net tax. Hover any number for the bracket-by-bracket breakdown.
| 1No AMT | 3,334 | |||
| 2No AMT | 3,333 | |||
| 3No AMT | 3,333 |
Federal AMT credit
Earned
$0
Recovered
$0
Remaining
$0
Plan comparison
Net value at the end of your hold horizon.
Lump-sum
All in Year 1
$79,118
−$587
Even split
Equal shares each year
$79,705
Optimized
Tax-aware schedule
$79,705
Highest
Estimates only. Excludes disqualifying dispositions, NSOs, multi-state moves, and AMT preferences other than ISO bargain elements. Long-term capital gains tax assumes a qualifying disposition (ISO held ≥1 yr from exercise and ≥2 yr from grant); state LTCG follows ordinary brackets except where the state grants preferential treatment (HI, ND, SC, WI, AR, NM) or has a dedicated LTCG-only tax (WA). Assumes you are within the $100K ISO limit (any portion of an annual ISO grant whose FMV at grant exceeds $100K is treated as NSO from the start, §422(d)). State AMT figures are 2025 (next-year values published in late 2026). Not financial advice.
QSBS note. If your shares qualify (typically pre-IPO C-corp grants held 5+ years), a federal rule lets you exclude up to $10M of gain on a future sale from federal tax. That single rule shifts exercise-timing math more than AMT does. (This is §1202 “qualified small-business stock”.) Modeled in beta, not here.
You optimized one grant in isolation. The beta optimizes ISOs alongside your RSUs, NSOs, and stock in one plan.
Request beta access →About Runway
Runway is a privately held AI company, incorporated in Delaware and headquartered in New York, NY.
Last reported secondary-market price: $14.91 per share (as of 2026-06-09). Your own 409A may differ.
Generative video.
Equity grants at Runway typically include incentive stock options (ISOs) and non-qualified stock options (NSOs).
Runway AI, Inc. is an American company headquartered in New York City that specializes in generative artificial intelligence research and technologies. The company is primarily focused on creating products for generating videos, images, and various multimedia content through developing commercial text-to-video and video generative AI models.
Source: Wikipedia (CC BY-SA 4.0)
Founded in 2018 by Cristóbal Valenzuela, Anastasis Germanidis, and Alejandro Matamala-Ortiz after meeting at NYU's Tisch ITP program, Runway builds generative video models from its New York headquarters. The Gen-3, Frames, Act-One performance-capture, and Aleph in-context editing releases anchor a product suite used across filmmaking, advertising, and visual effects. Studio deals with Lionsgate (2024) and AMC Networks (2025) brought trained-on-catalog workflows into production pipelines. General Atlantic led an April 2025 Series D at a $3B+ valuation, with Nvidia, SoftBank, Fidelity, and Baillie Gifford participating.
Sources: en.wikipedia.org · deadline.com · runwayml.com
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Runway.
The calculator works at any Runway valuation: enter your strike, the current 409A FMV, an expected IPO price, or anywhere in between. AMT is triggered on the bargain element (FMV minus strike) when you exercise; the calculator models federal AMT, state AMT, and the multi-year credit-recovery path.
Example: at Runway's last reported price of $14.91, exercising 5,000 ISOs with a $4.47 strike creates a $52,200 bargain element. Above the 2026 federal AMT exemption ($88,100 single, $137,000 married joint), the 28% AMT rate adds roughly $14,616 on top of regular tax before any state AMT (CA, CO, CT, MN). The credit recovers in later years when your regular tax exceeds AMT. The calculator above runs your exact figures.
All Runway tools → · Use the generic AMT + ISO Exercise Calculator for any company.
Runway equity questions
- How much alternative minimum tax (AMT) will I owe exercising Runway ISOs?
- Exercising incentive stock options (ISOs) does not create regular income tax, but the bargain element (the fair market value at exercise minus your strike price) counts toward the alternative minimum tax (AMT). The amount depends on the bargain element, your other income, your filing status, and your state. The calculator above models federal and state AMT, the AMT crossover point, and how the credit recovers in later years for your exact Runway figures.
- Does Runway grant ISOs, NSOs, or RSUs?
- Equity compensation at Runway typically takes the form of incentive stock options (ISOs) and non-qualified stock options (NSOs). Incentive stock options can trigger the alternative minimum tax (AMT) when you exercise.
- Are Runway shares eligible for QSBS?
- They might be. Qualified small business stock (QSBS) under Internal Revenue Code Section 1202 can exclude federal tax on much of the gain when shares were acquired at original issuance from a C-corporation while its gross assets were under $50 million, and held at least five years. Whether your Runway shares qualify turns on when you acquired them and the company's asset size at that time.
One piece of the puzzle.
OptionsAhoy plans your Runway equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.