Equity vs Salary Calculator

Turn offers into comparable present-value compensation totals fast. Adjust growth, bonus, vesting, and exit timing. Download results, share scenarios, and negotiate with confidence today.

Inputs

Enter offer details, equity terms, and exit assumptions.
All money values are in your chosen currency.
Cash compensation
Compare an offer against an alternative (or your baseline).

Equity terms
Use a percent of the company or the exact number of shares/options.
Used to convert valuation to price per share.

Exit assumptions
Model the outcome at a liquidity event and discount to today.
Higher means more risk and impatience.
Results will appear below the header.

Example data table

Use this as a starting point for a typical early‑stage offer.
Field Example
Offer salary$120,000
Alternative salary$140,000
Bonus10%
Equity percent0.25%
Shares outstanding10,000,000
Strike price$0.50
Dilution15%
Vesting / cliff4 years / 12 months
Exit valuation$150,000,000
Exit probability35%
Discount rate12%
Numbers are illustrative, not a promise.

Formula used

Core calculations implemented in this tool:
  • Vested fraction = 0 if months < cliff, else min(1, months / totalVestMonths).
  • Raw shares = grantShares OR equity% × sharesOutstanding.
  • Post‑dilution shares = vestedShares × (1 − dilution%).
  • Exit price/share = exitValuation ÷ sharesOutstanding.
  • Net proceeds = max(0, gross − exercise − capTax×max(0, gross−exercise)).
  • Expected PV (equity) = netProceeds × exitProb ÷ (1+discount)^{exitYears}.
  • PV (cash delta) = Σ[(offer−alt)×(1−incomeTax)] ÷ (1+discount)^{year}.
Note: real equity outcomes vary with liquidation preferences, option type, AMT, and timing of exercise.

How to use this calculator

  1. Enter both salary numbers and your expected bonus.
  2. Choose equity input type: percent ownership or shares/options.
  3. Fill vesting details and an exit scenario (valuation, timing, probability).
  4. Set taxes and a discount rate matching your risk tolerance.
  5. Click Calculate to compare present values.
  6. Use CSV/PDF downloads to share scenarios during negotiation.

Workforce pay mix benchmarks

Across growth-stage companies, total compensation often blends cash and equity. A common HR planning anchor is a 70/30 to 90/10 cash‑to‑equity split by level, with greater equity weight in early roles and revenue‑linked roles. Use the calculator to test how a 10% salary gap compares to a 0.10%–0.50% ownership range under realistic dilution.

Vesting, cliffs, and retention math

Vesting converts a headline grant into earned value over time. A 4‑year schedule with a 12‑month cliff means 0% is earned before month 12, then it typically accrues monthly. If your expected exit is in year 2, only about 50% may vest, which materially reduces expected proceeds. Adjust exit timing to match retention risk and career plans.

Dilution and option economics

Dilution reduces effective ownership as new rounds are raised. Modeling 10%–25% dilution is typical for a multi‑round path, and it can outweigh small improvements in valuation. Options also carry a strike price, so the economic gain is exit price minus strike. If strike is close to today’s implied price, exercise cost can be meaningful.

Probability-weighted valuation scenarios

HR teams increasingly use probability-weighted outcomes for offers, especially in volatile markets. A single valuation number can mislead. Try three exit probabilities—10%, 35%, and 60%—to see how risk appetite changes the expected PV. This makes compensation discussions consistent across candidates and prevents overpaying for unlikely upside.

Present value and discount rate selection

Discounting converts future payouts into today’s equivalent value. A 12% discount rate is a practical starting point for private-company risk, but finance partners may prefer 15%–25% for early-stage uncertainty. In the calculator, higher discount rates compress both future salary and equity, but they usually penalize equity more because equity concentrates later.

Negotiation levers that move outcomes

When the net expected advantage is negative, you can change inputs that matter most: reduce strike or request RSUs, increase the grant, improve salary, or negotiate acceleration terms. Break-even valuation helps anchor a discussion: it shows what valuation is required for equity to compensate for cash. Export the table to share a clean rationale. using clear data assumptions using clear data assumptions using clear data assumptions using clear data assumptions using clear data assumptions using clear data assumptions using clear data assumptions

FAQs

What does “expected equity PV” mean?

It is the equity payout after exercise cost and capital gains tax, multiplied by exit probability, then discounted back using your discount rate.

How do I enter equity if I only know a percent?

Select Percent ownership. Enter your percent and the company’s shares outstanding. The tool converts the percent into an equivalent share count.

What if my company has liquidation preferences?

This calculator assumes a simple common-share outcome without preference stacks. If preferences are heavy, payouts can be lower; reduce exit valuation or probability to stress‑test.

Should I use the same tax rate for salary and equity?

Not always. Salary is typically taxed as income, while equity gains can be capital gains. Use rates that match your jurisdiction and personal situation.

How do I interpret break-even exit valuation?

It approximates the valuation where the equity PV equals the after‑tax cash gap between offers. Above it, equity is more likely to offset lower cash.

Can I compare multiple offers?

Yes. Treat the alternative salary as Offer B’s cash baseline, then adjust equity inputs for Offer A. Re-run with swapped roles to compare both directions.

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Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.