Equity Calc Tool
Easily understand your startup compensation and equity package with this compensation and equity calculator.
Your typical startup compensation package consists of a combination of salary and equity. While it’s easy to understand cash salary, the equity portion can be difficult to assess, particularly for someone new to tech or startups. Startup equity often comes in the form of a stock options grant, a fixed number of shares that the employee will be able to buy (also called “exercise”) at a pre-determined price (the “strike price”) after meeting certain vesting conditions.
However, these two numbers alone — your stock options and strike price — do not actually convey your package’s worth; factors like the number of shares outstanding and investor dilution greatly impact the value of your options. On top of that, startups are inherently risky. The value of equity is neither certain nor fixed. The difference between the worst case and best case scenarios can be huge.