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Founder Equity Calculator

Split founder equity by contribution across idea, capital, time and risk, with vesting applied.

About Founder Equity Calculator

The weights make explicit what is usually left unsaid about why a split is what it is. Vesting then spreads each founder’s stake over the vesting period, with a one-year cliff meaning nothing vests until the first anniversary. Unvested equity is the only protection a founding team has against a co-founder leaving in month three with a quarter of the company.

Formula

Founder Equity

Equal split = 100% ÷ founders; annual vesting = each founder’s equity ÷ vesting years

weights
Relative importance assigned to each form of contribution
cliff
Point before which no equity vests at all

Worked example

With the default values below, Founder Equity Calculator returns Equal Split per Founder of 50.00%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Weight given to originating the ideaaccepts 0–100 %
15 %
Weight given to capital investedaccepts 0–100 %
25 %
Weight given to full-time commitmentaccepts 0–100 %
40 %
Weight given to expertise and networkaccepts 0–100 %
20 %
Number of foundersaccepts 1–8
2
Vesting periodaccepts 0–10 years
4 years

Results

Equal Split per Founder
50.00%
Total Weight Assigned
100.0
Equity Vesting per Year
12.50%
Equity Vesting at a One-Year Cliff
12.50%
Still Unvested After One Year
37.50%

Step by step

  1. 1Values used
  2. 2Founder Equity
  3. 3Equal Split per Founder= 50.00
  4. 4Total Weight Assigned= 100.0
  5. 5Equity Vesting per Year= 12.50
  6. 6Equity Vesting at a One-Year Cliff= 12.50
  7. 7Still Unvested After One Year= 37.50

Assumptions and limits

  • The result is derived only from the 6 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Founder Equity calculated?

Equal split = 100% ÷ founders; annual vesting = each founder’s equity ÷ vesting years The weights make explicit what is usually left unsaid about why a split is what it is. Vesting then spreads each founder’s stake over the vesting period, with a one-year cliff meaning nothing vests until the first anniversary.

Why does Founder Equity matter?

Unvested equity is the only protection a founding team has against a co-founder leaving in month three with a quarter of the company.

What values do I need to enter?

This calculator takes 6 inputs: Weight given to originating the idea, Weight given to capital invested, Weight given to full-time commitment, Weight given to expertise and network, Number of founders, Vesting period. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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