Plan your Arize AI NSO exercise
Calculator · free · no signup · pre-IPOArize AI is pre-IPO. Plan your NSO exercise tax (federal, state, FICA) at any expected valuation.
Beta · invite-only · AlphaLatitude Inc. · Free Tools
Your grant
Tax inputs
Hold strategy
Best after-tax payout — at year 1
$199,080
Sell + invest wins by $20,783 over Hold 1 yr.
Estimates only. Not financial advice.
Sell + invest
Best payout| Bargain element (sale − strike) | $350,000 |
| Federal | |
| State | |
| Medicare | −$5,075 |
| Additional Medicare | −$3,150 |
| Market gain over 1 yr at 10.0% | $18,573 |
| LTCG on diversified gain (fed + state + NIIT) | −$5,219 |
| Net at year 1 | $199,080 |
Sell every share immediately; invest the after-tax cash at the market return for 1 yr, then liquidate. Diversified — no single-stock concentration risk.
Exercise + hold 1 yr
| Sale proceeds (year 1) | |
| LTCG tax (federal + state + NIIT) | $0 |
| Net at year 1 | $178,297 |
Sold 2,678 shares at exercise to cover strike + tax; 2,322 shares held 1 yr for LTCG.
Social Security + Medicare are payroll taxes (collectively called FICA) — they apply because you're exercising as a current employee.
Both columns are stated in year-1 dollars: sell-now proceeds compound at the market return and pay LTCG on the gain at year 1; any cash paid out of pocket on the hold side carries the same opportunity cost.
Net at year N — by hold period
Estimates only. Excludes AMT (NSOs do not trigger AMT), state-AMT, multi-state moves, and disqualifying-disposition edge cases. Not financial advice.
You calculated one NSO decision. The beta plans NSOs alongside RSUs and ISOs in a single multi-year tax plan.
Request beta access →About Arize AI
Arize AI is a privately held AI company, headquartered in Berkeley, CA.
LLM observability.
Equity grants at Arize AI typically include incentive stock options (ISOs) and non-qualified stock options (NSOs).
Jason Lopatecki and Aparna Dhinakaran, both alumni of TubeMogul (acquired by Adobe) and Uber's ML infrastructure team, founded Arize AI in 2020. The platform monitors deployed machine learning models and LLMs in production, tracking data drift, model degradation, and hallucinations so teams can diagnose and fix failures without manually sifting logs. Arize raised a $70 million Series C in February 2025, led by Adams Street Partners with participation from Microsoft's M12 fund and Datadog, bringing total funding to $131 million.
Sources: arize.com
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Arize AI.
Arize AI NSO exercise creates ordinary income on the bargain element (federal, state, and FICA) at the price on the day you exercise. The calculator works at any valuation, so you can model your exercise cost at the current 409A FMV, an expected IPO price, or post-IPO scenarios.
All Arize AI tools → · Use the generic NSO Exercise Calculator for any company.
Arize AI equity questions
- How is a Arize AI NSO exercise taxed?
- Exercising a non-qualified stock option (NSO) creates ordinary income on the bargain element (the price on the day you exercise minus your strike), subject to federal income tax, state income tax, and FICA. The calculator above computes that tax for your Arize AI grant and compares selling the shares now against holding past the one-year mark for long-term capital-gains treatment.
- Does Arize AI grant ISOs, NSOs, or RSUs?
- Equity compensation at Arize AI 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 Arize AI 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 Arize AI 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 Arize AI equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.