Description
Calculate cash needed to exercise a supplied option count, including fees and optional withholding.
Startup cash budgets distinguish available funds, committed outlays, restricted balances and expected receipts. Subtracting commitments can create a negative balance even while total cash remains positive; dividing by burn assumes a constant spending rate.
Calculate cash needed to exercise a supplied option count, including fees and optional withholding.
When to use this tool
Use Startup Option Exercise Cash Base when checking a supplied cash commitment, balance or runway contribution.
How to use the tool and how it works
- Enter options, exercisePrice, fees, withholding, includeWithholding. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read exerciseCash, totalCash. Use the output convention below.
Require nonnegative whole options and nonnegative exercisePrice, fees and withholding. exerciseCash = options*exercisePrice; totalCash adds fees and adds withholding only when includeWithholding is true.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| options | Options | Required. Safe integer; minimum 0. |
| exercisePrice | Exercise Price | Required. Finite number; minimum 0. |
| fees | Fees | Required. Finite number; minimum 0. |
| withholding | Caller-supplied additional cash outlay, included only when includeWithholding is true. | Required. Finite number; minimum 0. |
| includeWithholding | Include Withholding | Required. Boolean. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| exerciseCash | Exercise Cash | Required. Finite number. |
| totalCash | Total Cash | Required. Finite number. |
{
"input": {
"options": 100,
"exercisePrice": 2,
"fees": 10,
"withholding": 50,
"includeWithholding": true
},
"output": {
"exerciseCash": 200,
"totalCash": 260
}
}Limitations and assumptions
- All money uses one currency. This budgets cash outlay, not option value, tax liability or an authorized exercise; withholding is supplied rather than calculated.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Use a dated cashflow forecast and the actual funding or payment terms when timing, changing burn or enforceability matters.
References
Similar or alternative tools
- Option Exercise Cash Inflow One Grant
Calculate one option grant’s gross exercise cash, net cash after supplied withholding and unexercised count.
- Startup Runway Committed Cash Adjustment
Calculate constant-burn cash runway after restricted funds and committed payments, preserving a signed shortfall.