Startup Employee Equity Calculator

Model option grants, vesting cliffs, dilution, taxes, outcomes. See ownership, costs, and exit payouts instantly. Plan smarter startup moves with practical equity scenario insights.

Calculator Inputs

Use the form below to compare ownership, vesting progress, exit value, and salary tradeoffs for a startup compensation package.

Reset

Example Data Table

These examples help benchmark different startup offer structures before entering your own values.

Role Grant Shares Total Shares Strike Price Projected Exit Estimated Dilution Salary Gap
Early Product Manager 25,000 8,000,000 $0.30 $80,000,000 15% $12,000
Senior Engineer 60,000 12,000,000 $0.65 $200,000,000 20% $25,000
Founding Designer 120,000 10,000,000 $0.15 $150,000,000 18% $35,000

Formula Used

1. Ownership Percentage

Ownership % = Grant Shares / Total Shares Outstanding × 100

2. Vested Shares

Vested Shares = Grant Shares × Vested Months / Total Vesting Months

3. Post-Dilution Ownership

Post-Dilution Ownership % = Grant Shares / (Total Shares × (1 + Dilution %)) × 100

4. Exercise Cost

Exercise Cost = Vested Shares × Strike Price

5. Exit Share Price

Exit Share Price = Projected Exit Valuation / Diluted Total Shares

6. Net Exit Value

Net Exit Value = max((Vested Shares × Exit Share Price) - Exercise Cost, 0) × (1 - Tax Rate)

7. Probability-Weighted Net Value

Probability-Weighted Value = Net Exit Value × Success Probability

8. Salary Tradeoff Check

Salary Gap = Market Salary - Offered Salary

How to Use This Calculator

  1. Enter the total option grant offered by the startup.
  2. Add the company’s total shares outstanding.
  3. Enter the option strike price from your offer letter.
  4. Use current and projected exit valuations for scenario planning.
  5. Estimate future dilution from later funding rounds.
  6. Set your vesting schedule, cliff, and time worked.
  7. Add a realistic tax rate and exit probability.
  8. Compare offered salary against market salary.
  9. Press the button to view results above the form.
  10. Use the chart and downloads for decision support.

FAQs

1. What does this startup employee equity calculator estimate?

It estimates ownership percentage, vested shares, dilution impact, exercise cost, projected exit value, salary tradeoff, and probability-weighted equity value from an option offer.

2. Why does dilution matter so much?

Future fundraising usually increases total shares outstanding. Your grant may keep the same share count, but your ownership percentage and exit value per share can shrink.

3. Does vested value mean guaranteed cash?

No. Vested value is still an estimate. Liquidity depends on company success, exit timing, share class rules, taxes, and your ability to exercise options.

4. How is the vesting cliff handled?

If your time worked is below the cliff, vested shares stay at zero. Once the cliff is reached, the calculator credits vesting proportionally across the full schedule.

5. Should I compare equity against salary?

Yes. Many startup offers trade salary for upside. Comparing expected equity value against the annual salary gap helps you judge risk more clearly.

6. Is projected exit valuation enough for a decision?

No. You should also review liquidation preferences, option type, exercise window, tax treatment, refresh grants, and the startup’s financing history.

7. Can this calculator handle RSUs too?

It is designed mainly for startup stock options. RSUs usually require different tax timing and no strike price, so results would need adjustment.

8. What is a good success probability to enter?

Use your own assumption. Conservative planning often uses lower probabilities. Compare several inputs to see how sensitive the offer is to uncertainty.

Related Calculators

tech startup valuation calculatorstartup exit calculatorstartup offer calculatorchances of getting a job calculatorbusiness startup calculatorfind the first 6 terms of the sequence calculator4-2-1 rule calculatoru1-u2 calculatorfirst quartile range calculatorschedule k-1 calculator

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.