Affirm (AFRM) Stock Concentration Calculator
Calculator · free · no signup · AFRMQuantify Affirm concentration risk. Drawdown impact at 30 / 50 / 70%, with the tax-aware trade-off between selling down and hedging.
Beta · invite-only · AlphaLatitude Inc. · Free Tools
Your inputs
Adjust — results update instantly.Position & portfolio
Tax
Most fee-only advisors target ≤10% in any single name. You're at 67%.
Estimates only. Not financial advice.
Most sensitive to: Expected market return (±10% on this input swings best-plan wealth by ±$190,508).
Cost of fully de-concentrating
All three plans sell to 0% (no hedge).Sensitivity. If your expected position return drops below 19.6%/yr, lump-sum (sell everything today) beats every spread plan above.
Build your own plan
Toggle below — chart updates live. Sell buttons show the slice.Tech / Software single names hit a 50%+ peak-to-trough drawdown in roughly 1 of every 5 rolling 3-year windows over 2014–2024. Even mega-caps aren’t exempt.
Tax brackets: 2026 · Estimates only — not financial advice.
Estate note. Heirs receive a stepped-up basis at death (§1014), eliminating built-in gain on inherited shares. Older holders who plan to bequeath rather than sell may rationally never de-concentrate.
You sized one position's risk. The beta integrates hedging, sell-down, and tax timing into one optimized plan.
Request beta access →About Affirm
Affirm (AFRM) is a public Fintech company, incorporated in Nevada and headquartered in San Francisco, CA. IPO'd Jan 13, 2021.
Last close: $74.69 per share (as of 2026-06-16).
Equity grants at Affirm typically include incentive stock options (ISOs), non-qualified stock options (NSOs), and restricted stock units (RSUs).
Affirm Holdings, Inc. is an American financial technology company and a point-of-sale lender. Founded in 2012 by PayPal co-founder Max Levchin, it is the largest U.S. based buy now, pay later (BNPL) financier. As of 2025, Affirm reports nearly 27 million users and processing $37 billion in annual payments.
Source: Wikipedia (CC BY-SA 4.0)
Buy-now-pay-later financing without compounding interest or late fees is Affirm's core product proposition. Max Levchin, Nathan Gettings, Jeffrey Kaditz, and Alex Rampell founded Affirm in San Francisco in 2012 through the HVF startup studio; Levchin, a PayPal co-founder, became CEO in 2014. The company charges merchants a fee to offer installment options at checkout and earns interest income on longer-term loans, partnering with Amazon, Walmart, and Shopify. Affirm IPO'd on Nasdaq as AFRM in January 2021, with shares more than doubling on the first day of trading.
Sources: en.wikipedia.org · news.crunchbase.com
Equity comp at Affirm
- RSUs use single-trigger vesting: shares become yours as each portion vests on schedule, and the value is taxed as ordinary income at that point. No IPO or acquisition is required.
Researched 2026-05-07.
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Affirm.
If a meaningful share of your net worth sits in AFRM, concentration risk is the question. This calculator quantifies drawdown impact at 30 / 50 / 70%, and the trade-off between selling down (tax cost now) versus hedging (option premium drag), auto-filled with AFRM's option-implied volatility.
Example: 5,000 AFRM shares at $74.69 is a $373,450 position. A 30% drawdown costs $112,035; a 50% drawdown costs $186,725; a 70% drawdown costs $261,415. The calculator quantifies the trade-off between selling down (immediate capital-gains tax) and hedging (option premium drag) using AFRM's option-implied volatility and your cost basis.
All Affirm tools → · Use the generic Stock Concentration Calculator for any company.
Affirm equity questions
- How much AFRM stock is too much?
- There is no single threshold, but the larger the share of your net worth in one stock, the more a single bad year can set back your plans. The calculator above quantifies the drawdown impact at 30, 50, and 70 percent for your AFRM position and weighs selling down (which triggers capital-gains tax now) against hedging (which costs option premium).
- Does Affirm grant ISOs, NSOs, or RSUs?
- Equity compensation at Affirm typically takes the form of incentive stock options (ISOs), non-qualified stock options (NSOs), and restricted stock units (RSUs). Incentive stock options can trigger the alternative minimum tax (AMT) when you exercise. Restricted stock units are taxed as ordinary income when they vest.
- Do Affirm RSUs use double-trigger vesting?
- No. Affirm restricted stock units (RSUs) use single-trigger vesting: each tranche becomes yours as it vests on schedule, taxed as ordinary income at that point, with no liquidity event required.
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OptionsAhoy plans your Affirm equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.