SwitchWizeFinancial Decisions, Made Clearer
P3

QSBS Exclusion Scenario Calculator

Model how much of your qualified small business stock gain may be excluded from federal tax based on acquisition date, holding period, and basis assumptions.

Quick answer: Screen gain using acquisition-date, holding-period, basis, and rate assumptions under current Section 1202 tiers. Enter Original Stock Basis, Gain on Sale, Years Held, and Stock Acquired After July 4, 2025 to personalize the estimate. It returns Excluded Gain, Modeled Exclusion Percentage, and Remaining Taxable Gain so you can compare the impact before choosing a next step. Use it to compare long-term value, tax impact, risk, time horizon, and contribution choices.

SWReviewed by SwitchWize Research Desk · Last reviewed July 20, 2026
Excluded Gain
$5,000,000
Excluded Gain
$5,000,000
Modeled Exclusion Percentage
100.00%
Remaining Taxable Gain
$0
Federal Tax Saved
$1,190,000
Diagnostic

If your holding period and eligibility requirements are met, about $5,000,000 of this gain is excluded from federal tax.

That saves roughly $1,190,000 in federal capital gains tax.

Compare brokerage accounts
What to do next

Compare brokerage accounts

Your action plan
  1. 1

    Set the target and timeline for this plan

    Screen gain using acquisition-date, holding-period, basis, and rate assumptions under current Section 1202 tiers.

  2. 2

    Pressure-test one alternate scenario before deciding

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

Compare brokerage accounts

This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

Turn this result into a decision

Every SwitchWize calculator connects to a product comparison, rate context, guidance, alerts, and Money Map.

Rate authority hub
Compare
You could gain ~$5,000,000/yr. Compare nowMove from calculation to current product options.
Rate Trend
Track fed fundsUse market context before you decide when to act.
Guide
Best REIT ETFs: Top Funds for Income and GrowthCompare the best REIT ETFs 2026 by expense ratio, dividend yield, and risk. See which real estate ETF fits your portfolio and income goals.
Money Map
Map this $5,000,000/yr opportunitySave this opportunity and see how it fits your broader money plan.
Alert
Create a rate alertWatch the market instead of checking manually.
Free to embed

Add this calculator to your site

Paste this snippet into any page. No account or API key required, the widget is responsive, and it updates with live rates. A SwitchWize attribution link is included in the embed automatically.

<iframe src="https://www.switchwize.com/embed/qualified-small-business-stock?source=embed_selfserve" width="100%" height="680" loading="lazy" style="border:1px solid #e2e8f0;border-radius:14px;max-width:100%;width:100%" title="SwitchWize calculator"></iframe>
<script>(function(){window.addEventListener("message",function(e){if(e.origin!=="https://www.switchwize.com")return;var d=e.data;if(!d||d.type!=="sw-embed-resize")return;var f=document.getElementsByTagName("iframe");for(var i=0;i<f.length;i++){if(f[i].contentWindow===e.source){f[i].style.height=d.height+"px";break;}}});})();</script>

Frequently Asked Questions

Everything you need to know.

What does an example QSBS Exclusion Scenario Calculator calculation look like?
Using this calculator's own default assumptions, a original stock basis of $100,000, gain on sale of $5,000,000 and years held of 6 produces an estimated excluded gain of $5,000,000 and modeled exclusion percentage of 100.0%. Enter your own numbers above to see how it changes for your situation.
How does the acquisition date affect my exclusion?
The federal tax code assigns different exclusion tiers based on when you purchased the stock. Stocks acquired at different times qualify for different maximum exclusion percentages, so the date you bought in determines which tier applies to your situation.
Why does holding period matter for this exclusion?
You must meet a minimum holding period to qualify for the exclusion at all. If you hold longer than that minimum, you may qualify for a higher exclusion percentage, so the relationship between how long you wait and how much you can exclude is direct.
Is the QSBS Exclusion Scenario Calculator free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the QSBS Exclusion Scenario Calculator affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare brokerage accounts, or run Money Map to compare this investing & retirement decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (brokerage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

Qualified small business stock can qualify for a significant exclusion of gains from federal taxation, but the exclusion percentage depends on when you acquired the stock and how long you've held it. Understanding which tier applies to your situation helps you forecast your actual tax liability and plan the timing of a sale.

How to Use It

  1. 1Enter the original cost basis of your stock purchase.
  2. 2Enter the total gain you expect to realize on sale.
  3. 3Enter how many years you have held or plan to hold the stock.
  4. 4Indicate whether the stock was acquired after July 4, 2025, which affects the exclusion tier you qualify for.
  5. 5Enter your expected federal capital gains tax rate.
  6. 6Review the modeled exclusion percentage, the dollar amount of gain excluded from tax, your remaining taxable gain, and the federal tax saved under this scenario.
Related calculators
Capital Gains Tax CalculatorConcentrated Stock Diversification CalculatorTax-Loss Harvesting Scenario Calculator
Compare brokerage accounts