PagerDuty (PD) NSO Exercise Calculator
Calculator · free · no signup · PDPlan your PagerDuty NSO exercise (federal, state, FICA) and compare sell-vs-hold for long-term capital gains.
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 PagerDuty
PagerDuty (PD) is a public Dev Tools company, incorporated in Delaware and headquartered in San Francisco, CA. IPO'd Apr 11, 2019.
Last close: $8.97 per share (as of 2026-06-16).
Equity grants at PagerDuty typically include non-qualified stock options (NSOs) and restricted stock units (RSUs).
PagerDuty, Inc. is an American cloud computing company specializing in a SaaS incident management platform for IT operations departments.
Source: Wikipedia (CC BY-SA 4.0)
Three ex-Amazon engineers, Alex Solomon, Andrew Miklas, and Baskar Puvanathasan, started PagerDuty in 2009 after experiencing fragile on-call rotations under Amazon's 'you build it, you run it' model. Headquartered in San Francisco, the company turned on-call alerting into a full operations cloud spanning incident response, automation, AIOps, and customer service operations. Jennifer Tejada took the CEO seat in 2016 and steered the IPO onto NYSE under ticker PD in April 2019. Fiscal 2026 revenue reached roughly $493M with annual recurring revenue near $499M, and the platform now positions itself as a control plane for AI-driven operations.
Sources: en.wikipedia.org · pagerduty.com
Equity comp at PagerDuty
- 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 PagerDuty.
Use this calculator to estimate your PagerDuty (PD) NSO exercise tax (federal, state, FICA), then compare selling now versus holding through the long-term capital gains threshold. Inputs are yours: grant terms, current price, your income, your state.
Example: at PagerDuty (PD)'s last close of $8.97, exercising 5,000 NSOs with a $2.69 strike creates a $31,400 bargain element, taxed as ordinary income on the day you exercise. Combined federal + state + FICA on that bargain typically lands between $8,478 and $14,130 depending on your bracket and state. The calculator above computes the exact figure for your situation and compares selling now vs. holding through the long-term capital-gains threshold.
All PagerDuty tools → · Use the generic NSO Exercise Calculator for any company.
PagerDuty equity questions
- How is a PagerDuty 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 PagerDuty grant and compares selling the shares now against holding past the one-year mark for long-term capital-gains treatment.
- Does PagerDuty grant ISOs, NSOs, or RSUs?
- Equity compensation at PagerDuty typically takes the form of non-qualified stock options (NSOs) and restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.
- Do PagerDuty RSUs use double-trigger vesting?
- No. PagerDuty 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.
One piece of the puzzle.
OptionsAhoy plans your PagerDuty equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.