PayPal (PYPL) Stock Concentration Calculator

Calculator · free · no signup · PYPL

Quantify PayPal 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

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Position & portfolio

Default. Adjust to test.
35%
Default. Adjust to test.
20%
10%

Tax

67%
Highly concentratedLong-term
If 30% drop
$150,000
If 50% drop
$250,000
If 70% drop
$350,000

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).

Tax
Wealth (3y)$956,485
+$33,417 vs.

Tax
Wealth (3y)$994,174
+$71,106 vs.

Tax
Wealth (3y)$1.04M
+$112,490 vs.

Sensitivity. If your expected position return drops below 19.6%/yr, lump-sum (sell everything today) beats every spread plan above.

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Toggle below — chart updates live. Sell buttons show the slice.
Sell over 1 yearSell over 2 yearsSell over 3 yearsCustom
$712,500$815,995$919,489$1,022,984$1,126,478Yr 0Yr 1Yr 2Yr 3
Year 1
Year 2
Year 3
Tax$200,753
Hedge cost$37,676
Wealth at Y3$1,046,371
Vs. best fixed plan+$10,813

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.

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About PayPal

PayPal (PYPL) is a public Fintech company, headquartered in San Jose, CA. IPO'd Jul 20, 2015.

Last close: $43.65 per share (as of 2026-06-16).

Equity grants at PayPal typically include restricted stock units (RSUs).

PayPal Holdings, Inc. is an American multinational financial technology company operating an online payments system in the majority of countries that support online money transfers; it serves as an electronic alternative to traditional paper methods such as checks and money orders. The company operates as a payment processor for online vendors, auction sites and many other commercial and company users.

Source: Wikipedia (CC BY-SA 4.0)

Founded in 1998 as Confinity by Max Levchin and Peter Thiel, the company merged with Elon Musk's X.com in 2000 to form PayPal. eBay acquired the firm in 2002, then spun it off in July 2015, when shares began trading on NASDAQ under PYPL. Headquartered in San Jose, California, PayPal operates the namesake consumer wallet alongside Braintree, Venmo, Honey, buy-now-pay-later products, and the PYUSD stablecoin. Alex Chriss took the CEO role in 2023. Fiscal 2024 revenue reached roughly $31 billion.

Sources: en.wikipedia.org · investor.pypl.com

Equity comp at PayPal

  • 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 PayPal.

If a meaningful share of your net worth sits in PYPL, 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 PYPL's option-implied volatility.

Example: 5,000 PYPL shares at $43.65 is a $218,250 position. A 30% drawdown costs $65,475; a 50% drawdown costs $109,125; a 70% drawdown costs $152,775. The calculator quantifies the trade-off between selling down (immediate capital-gains tax) and hedging (option premium drag) using PYPL's option-implied volatility and your cost basis.

All PayPal tools → · Use the generic Stock Concentration Calculator for any company.

PayPal equity questions

How much PYPL 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 PYPL position and weighs selling down (which triggers capital-gains tax now) against hedging (which costs option premium).
Does PayPal grant ISOs, NSOs, or RSUs?
Equity compensation at PayPal typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.
Do PayPal RSUs use double-trigger vesting?
No. PayPal 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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