Etsy (ETSY) RSU sell-vs-hold
Calculator · free · no signup · ETSYSell at vest or hold? Compare after-tax payout from selling Etsy RSUs at vest vs. holding through the LTCG cliff at 12 months.
Beta · invite-only · AlphaLatitude Inc. · Free Tools
Your vest
Tax inputs
Hold strategy
Best after-tax payout — at year 1 yr
$47,709
Sell + invest wins by $4,981 over Hold 1 yr.
Estimates only. Not financial advice.
Heads-up: under-withholding. Your employer withholds federal tax at the IRS supplemental rate (22.0% on this vest, ≈ $17,600). Your marginal federal rate on this vest is 32.7%, owing $26,171. Expect to settle the $8,571 gap at tax time.
The hidden purchase
Tax was paid at vest either way. Holding is mathematically equivalent to taking $44,509 in after-tax cash and buying $44,509 of ETSY today.
Most diversification frameworks would advise against a purchase that size in a single name; the right answer depends on your conviction in ETSY. Holding past one year converts the gain to LTCG.
Sell + invest
Best payout| Vest value (shares × price) | $80,000 |
| Federal | |
| State | |
| Medicare | −$1,160 |
| Additional Medicare | −$720 |
| Market gain over 1 yr at 10.0% | $4,451 |
| Cap-gain tax on diversified gain — LTCG (federal + state + NIIT) | −$1,251 |
| Net at year 1 yr | $47,709 |
Sell every share at vest; invest the after-tax cash at the market return for 1 yr, then liquidate. Diversified — no single-stock concentration risk.
Hold 1 yr
| Vest value (shares × price) | $80,000 |
| Vest tax (federal + state + FICA) | |
| Net at year 1 yr | $42,728 |
Sold 444 shares to cover vest tax (net-settled); kept 556 shares 1 yr to qualify for long-term capital gains.
Social Security + Medicare are payroll taxes (collectively called FICA) — they apply because you're still employed at vest.
Both columns are stated in year-1 yr dollars. The sell side compounds at the market return; the hold side compounds at your single-stock expected return after a 20% volatility drag.
Estimates only. Assumes net-settled (sell-to-cover) vesting; double-trigger and pre-IPO RSUs are out of scope. Excludes multi-state moves, AMT interactions on other equity, and 83(b) elections. Not financial advice.
You evaluated one RSU vest. The beta plans every vest of every grant across years, with concentration and AMT in the loop.
Request beta access →Related calculators: RSU Lot Order Calculator · Stock Concentration Calculator
About Etsy
Etsy (ETSY) is a public Marketplace company, incorporated in Delaware and headquartered in Brooklyn, NY.
Equity grants at Etsy typically include restricted stock units (RSUs).
Etsy, Inc. is an American e-commerce company focused on handmade or vintage items and craft supplies. Its marketplace includes categories such as jewelry, apparel, home decor, furniture, toys, and art. Items described as vintage must be at least 20 years old. The platform provides sellers with individual storefronts where they list their goods for a fee of US$0.20 per item. Since 2013, the company has allowed the sale of mass-manufactured items.
Source: Wikipedia (CC BY-SA 4.0)
Rob Kalin and co-founders launched the marketplace in Brooklyn in 2005 for handmade and vintage goods, a deliberate counterposition to mass retail. Sellers are largely individuals and small studios, which makes the take rate, advertising, and payments the revenue model rather than inventory. The pandemic brought a surge driven partly by cloth masks, followed by a multi-year normalization. Reverb for musical instruments and Depop for secondhand fashion were acquired in 2019 and 2021. Headquarters remain in Brooklyn, and the company is a certified B Corporation.
Sources: etsy.com · en.wikipedia.org
Equity comp at Etsy
- 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 2026-08-17.
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Etsy.
Etsy (ETSY) RSUs vest as ordinary income at the price on vest day. The decision is whether to sell at vest and reinvest, or hold the shares through the 12-month LTCG cliff. This calculator runs both paths through the same after-tax math so you can compare like-for-like.
All Etsy tools → · Use the generic RSU Sell-vs-Hold Calculator for any company. Diversifying multiple RSU lots? See the lot-by-lot sell order →
Etsy equity questions
- Should I sell or hold my Etsy RSUs at vest?
- Etsy restricted stock units (RSUs) are taxed as ordinary income on their value at vest whether or not you sell. The only open decision is what to do with the shares afterward: sell at vest and reinvest, or hold past twelve months for long-term capital-gains treatment on any further gain. The calculator above runs both paths through the same after-tax math so you can compare them directly.
- Does Etsy grant ISOs, NSOs, or RSUs?
- Equity compensation at Etsy typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.
- Do Etsy RSUs use double-trigger vesting?
- No. Etsy 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.
Find another companyMarketplace peers
One piece of the puzzle.
OptionsAhoy plans your Etsy equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.