Microsoft (MSFT) RSU sell-vs-hold
Calculator · free · no signup · MSFTSell at vest or hold? Compare after-tax payout from selling Microsoft 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 MSFT today.
Most diversification frameworks would advise against a purchase that size in a single name; the right answer depends on your conviction in MSFT. 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 →About Microsoft
Microsoft (MSFT) is a public Cloud/SaaS company, incorporated in Washington and headquartered in Redmond, WA. IPO'd Mar 13, 1986.
Last close: $393.83 per share (as of 2026-06-17).
Equity grants at Microsoft typically include restricted stock units (RSUs).
Microsoft Corporation is an American multinational technology company headquartered in Redmond, Washington. The company became influential in the rise of personal computers through software like Windows and has since expanded into areas such as Internet services, cloud computing, artificial intelligence, video gaming, and more. A Big Tech company, Microsoft is the largest software company by revenue, one of the most valuable public companies, and one of the most valuable brands globally.
Source: Wikipedia (CC BY-SA 4.0)
Bill Gates and Paul Allen launched Microsoft in Albuquerque in 1975 to sell a BASIC interpreter for the Altair 8800, relocated to Bellevue in 1979, and settled in Redmond by 1986. Windows and Office anchored the franchise; the 1986 NASDAQ IPO minted a generation of millionaires. Under Satya Nadella, CEO since 2014, the company pivoted to Azure cloud, absorbed GitHub and LinkedIn, closed the $69B Activision Blizzard deal in 2023, and poured $13B+ into OpenAI to thread Copilot through every product surface. Market cap sits above $3T.
Sources: en.wikipedia.org · en.wikipedia.org
Equity comp at Microsoft
- Microsoft does not grant ISOs to employees; equity comp is RSUs only. The AMT-ISO calculator does not apply.
- 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.
- Vesting schedule: 4 years, 1-year cliff (industry standard).
Sources: microsoft.com
Researched 2026-05-06.
OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Microsoft.
Microsoft (MSFT) 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.
Example: 500 Microsoft (MSFT) RSUs vesting at $393.83 per share is $196,915 of ordinary income on vest day. After roughly 32% combined federal + state + FICA (~$63,013), the post-tax share value is ~$133,902. Holding 12 months for long-term capital-gains treatment then only matters for the price change between vest and sale; the ordinary income at vest is already locked in. The calculator runs both paths through the same after-tax math.
All Microsoft tools → · Use the generic RSU Sell-vs-Hold Calculator for any company.
Microsoft equity questions
- Should I sell or hold my Microsoft RSUs at vest?
- Microsoft 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 Microsoft grant ISOs, NSOs, or RSUs?
- Equity compensation at Microsoft typically takes the form of restricted stock units (RSUs). Restricted stock units are taxed as ordinary income when they vest.
- Do Microsoft RSUs use double-trigger vesting?
- No. Microsoft 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 Microsoft equity alongside hedging, vesting, and de-concentration, across bullish, neutral, and bearish market scenarios. Free during beta.