Calculator Inputs
Example Data Table
| Example | Equity type | Shares | FMV | Strike | Vesting | Exit price |
|---|---|---|---|---|---|---|
| Offer A | RSU | 1,000 | 10.00 | — | 48m, 12m cliff | 25.00 |
| Offer B | ISO | 5,000 | 4.00 | 1.50 | 48m, 12m cliff | 12.00 |
| Offer C | NSO | 8,000 | 2.50 | 2.00 | 36m, 6m cliff | 6.00 |
Formulas Used
- Vested fraction: If months since vest start < cliff, then 0. Otherwise, vestedPeriods = floor(monthsSinceStart / freqMonths) and vestedFraction = vestedPeriods / totalPeriods.
- Projected exit price: If override is empty, exitPrice = FMV × (1 + growth)^(yearsToLiquidity).
- Effective shares: effectiveShares = vestedShares × (1 − dilution).
- Gross value: gross = effectiveShares × price. Fees are gross × feeRate.
- Taxes (simplified): RSUs use ordinary tax at vest (FMV proxy). Options use intrinsic value max(0, price − strike) × shares with ordinary and/or capital gains, depending on timing selections.
- Risk-adjusted present value: PV = (Net × probability) / (1 + discountRate)^(yearsToLiquidity). Immediate values are not discounted.
How to Use This Calculator
- Enter your grant details, vesting start, cliff, duration, and frequency.
- Set today’s fair value, then choose either a projected or fixed exit price.
- Add dilution, fees, and your estimated tax rates for realistic take-home value.
- Set probability and discount rate to compare offers with different risks.
- Click Calculate. Use the scenario table to stress-test assumptions.
- Download CSV or PDF to save, share, or negotiate offers.
FAQs
1) Why does dilution reduce my estimated payout?
Future fundraising can increase total shares outstanding, shrinking your ownership percentage. This tool applies a simple percentage reduction to approximate that effect.
2) What is the difference between RSUs and options?
RSUs become shares when they vest. Options give you the right to buy shares at a strike price, so their value depends on the spread between price and strike.
3) Why is probability of liquidity included?
Private-company equity can end up worth nothing if there is no exit. Multiplying by probability helps you compare risky offers against safer cash compensation.
4) How accurate are the tax calculations?
They are intentionally simplified to stay broadly useful. Withholding rules, holding periods, AMT, and local regulations can materially change outcomes.
5) Should I use projected exit price or an override?
Use an override when you have a credible target, such as a term sheet or analyst range. Otherwise, growth projection helps you explore multiple plausible paths.
6) Why show present value instead of only future value?
Money received later is usually worth less today. Discounting helps you compare a near-term salary bump to a larger but delayed equity outcome.
7) Can I compare two offers side-by-side?
Yes. Run the calculator twice with each offer’s inputs and download both CSV files. Compare risk-adjusted present values and scenario ranges.