Pre-IPO Equity Value Calculator

Model your option payoff before the IPO launch. Include vesting, dilution, taxes, and fees easily. Compare scenarios and export results for career decisions fast.

Calculator

Options include a strike price; RSUs do not.
Used only for display and exports.
Total shares/options in your grant.
Percent vested as of today.
How much of vested equity you plan to sell.
Set 0 for RSUs or no exercise cost.
Your best estimate of today’s price.
Base case exit price per share.
Future rounds, pool refresh, or IPO effects.
Your personal probability estimate.
Lockups, market risk, and selling constraints.
Shown in results; discount is separate.
One blended rate for planning (not advice).
Broker, platform, and legal/processing costs.
Reset

This tool provides planning estimates only and may differ from actual outcomes.

Example data table

Shares Vested% Type Strike IPO Price Dilution% Prob% Liq% Tax% Fees% Estimated Net
10,000 50 Options $1.00 $15.00 10 60 5 30 1 $22,353.60
4,000 100 RSUs $0.00 $20.00 15 75 8 32 1 $35,198.40

Numbers are illustrative examples to demonstrate the output format.

Formula used

The calculator estimates proceeds from selling a portion of vested equity at an assumed IPO price, then applies adjustment factors:

  • Vested shares = Shares granted × (Vested% ÷ 100)
  • Shares sold = Vested shares × (Sell% ÷ 100)
  • Gross sale proceeds = Shares sold × Expected IPO price
  • Adjusted proceeds = Gross proceeds × (1 − Dilution%) × IPO Probability% × (1 − Liquidity discount%)
  • Exercise cost (Options) = Shares sold × Strike price
  • Fees = Adjusted proceeds × Transaction fee%
  • Profit before tax = max(0, Adjusted proceeds − Exercise cost − Fees)
  • Taxes = Profit before tax × Effective tax%
  • Net after tax = max(0, Profit before tax − Taxes)

This is a planning model; real outcomes depend on plan rules, tax jurisdiction, and liquidity constraints.

How to use this calculator

  1. Choose your equity type (Options or RSUs) and a currency.
  2. Enter shares granted, vested percent, and how much you’d sell.
  3. Provide strike price for options, plus an expected IPO price.
  4. Add realism with dilution, IPO probability, and liquidity discount.
  5. Set one effective tax rate and expected transaction fees.
  6. Press Calculate to see net results above the form.
  7. Use scenario rows to compare downside and upside outcomes.
  8. Export your results using CSV or PDF download buttons.

FAQs

1) Is this calculator accurate for every equity plan?

It’s a planning estimate. Equity plans differ in vesting rules, taxes, exercise windows, and selling restrictions. Use it to compare scenarios, not as a final number.

2) What does “dilution” mean here?

Dilution approximates how future fundraising and pool changes can reduce your ownership’s economic value. This model applies dilution as a value factor to keep planning simple.

3) Why include an IPO probability?

Many companies never reach an IPO or do so later than expected. Probability turns the output into an “expected value” useful for salary negotiations and career planning.

4) What is a liquidity discount?

It represents constraints like lockups, limited trading windows, market volatility, or needing to hold longer. If you want an optimistic view, set it to zero.

5) How should I pick a tax rate?

Use one blended rate that reflects your likely taxes on equity profit. If you’re unsure, run multiple scenarios (e.g., 20%, 30%, 40%) to see sensitivity.

6) Options vs RSUs: what changes?

Options require paying a strike price to exercise, so exercise cost reduces proceeds. RSUs generally have no strike cost, but may have different tax timing in practice.

7) Can I model selling only part of my shares?

Yes. Use “Sell at IPO (%)” to estimate partial selling. Keeping some shares is common, especially if you believe in long-term upside after the lockup period.

8) Why doesn’t the lockup directly change the math?

Lockup length varies by deal and timing. This tool treats liquidity discount as the numeric impact, while lockup months are displayed for context and reporting.

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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.