# Diversification calculator

*Free tool · runs in your browser*

See how much of your net worth sits in one company, and what a fall in its stock would cost with and without diversifying.

**What-if only.** This shows scenarios. It is not advice on what to do with your shares.

*This page has an interactive calculator. Use it on the web page: https://rsu-hub.vercel.app/tools/diversification-calculator/.*

## The maths

-   Share of net worth = your company shares ÷ (company shares + everything else).
-   Diversifying d% moves d% of your shares into other investments. We assume that money stays flat, so the example isolates the one stock.
-   Wealth protected = company shares × d% × the drop.
-   Left out: tax, brokerage and currency costs, and the fact that your other investments move too.

Want the thinking behind it? Read [why diversify your RSUs](https://rsu-hub.vercel.app/guides/why-diversify-your-rsus/).

## Quick answers

**Does diversifying increase my wealth?**

Not on average. Diversifying mainly lowers how much one stock can hurt you. If that stock rises, you give up some of the gain. That is why this tool shows wealth protected in a fall, not wealth gained.

**How much should I diversify?**

There is no right answer for everyone. It depends on your goals, your other assets and how much a drop would hurt. A SEBI-registered investment adviser can help you decide.

**Do I owe tax if I sell vested RSU shares?**

Possibly. Tax on the vest-day value is already paid as salary. A gain above that value is taxed as capital gains when you sell. This tool ignores tax, so read the tax guide and try the holding period checker.

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Source: https://rsu-hub.vercel.app/tools/diversification-calculator/