I can't afford to exercise — what are my options?

Exercising can cost more than people expect — the strike price plus tax. If you don't have the cash, you still have choices, each with real trade-offs.

First, know the true cost

The cost is the strike price times your shares, plus any AMT (ISOs) or income tax (NSOs) on the spread. The tax can dwarf the strike. Calculate the full cost before assuming you can't manage it.

Your realistic choices

Partial exercise. Exercise only what you can afford, and start tax clocks on that portion. You don't have to do all of it.
Sell-to-cover via a liquidity window. If a tender or secondary is open, a cashless exercise or sell-to-cover funds the cost from the shares themselves.
Exercise financing. Non-recourse funding pays your cost in exchange for a share of the upside; you owe nothing if the company fails. It's expensive — understand the terms. See financing to exercise.
Wait (if you can). If you're not leaving, you may be able to delay until a liquidity event makes a cashless route possible.
Walk away. Sometimes forfeiting is the rational choice if the cost and risk outweigh the likely value.

How to choose

Confirm your window — a leaving deadline may force the timing.
Check for any open liquidity that enables sell-to-cover.
Compare financing costs against simply selling a slice, if you can.
Only risk cash — your own or financed — that you can afford to lose.

We don't sell financing. Non-recourse financing can help, but it's costly and not always the best route — often selling a slice in a liquidity window is cheaper. Compare before committing.

Frequently asked questions

What is non-recourse financing to exercise options?

It's funding that pays your exercise cost and taxes in exchange for a share of the future upside, with no personal liability if the company fails — you simply owe nothing. It unlocks exercise without your own cash, but it's expensive, so compare it against selling a slice of shares instead.

Can I exercise just some of my options?

Usually yes. A partial exercise lets you convert and start tax clocks on only what you can afford, leaving the rest as options. It's a common way to manage the cash and risk of exercising.

Is it ever right to let options expire?

Yes. If the cost to exercise plus tax is high, the company's prospects are uncertain, and you can't access liquidity, forfeiting can be the rational choice. Options only have value if the company does well, so never risk cash you can't afford to lose.

Get the numbers before you decide

Free, no sign-up: estimate what your stake is worth, the cost to exercise, and whether you can sell.

Value my equity (free) → · All free tools → · Glossary →

When you're ready to go deeper, there's an optional Equity Toolkit and Report.