Option Pool Calculator

Size an option pool from planned hiring and the grant levels each role expects.

About Option Pool Calculator

Sizing a pool bottom-up from the hiring plan is far more defensible than picking a round number. The buffer matters because pools also fund retention refreshes, not just new hires. A pool sized without a buffer runs out mid-cycle, and topping it up between rounds means another dilution conversation with the board.

Formula

Option Pool

Pool = Σ (hires in each band × equity granted per hire in that band)

buffer: Additional headroom for refresh grants and unplanned hires

Worked example

With the default values below, Option Pool Calculator returns Option Pool Required of 5.750%. Change any input above and every figure here is recalculated in your browser.

Inputs used

Senior hires plannedminimum 0: 3
Equity per senior hireaccepts 0–100 %: 1 %
Mid-level hires plannedminimum 0: 8
Equity per mid-level hireaccepts 0–100 %: 0.25 %
Junior hires plannedminimum 0: 15
Equity per junior hireaccepts 0–100 %: 0.05 %

Results

Option Pool Required: 5.750%
Equity for Senior Hires: 3.000%
Equity for Mid-Level Hires: 2.000%
Equity for Junior Hires: 0.750%
Pool With a 25% Buffer: 7.188%

Step by step

1Values used
2Option Pool
3Option Pool Required= 5.750
4Equity for Senior Hires= 3.000
5Equity for Mid-Level Hires= 2.000
6Equity for Junior Hires= 0.750
7Pool With a 25% Buffer= 7.188

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, fees or charges or compounding frequency into account.
Figures are rounded for display to 3 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 Option Pool calculated?

Pool = Σ (hires in each band × equity granted per hire in that band) Sizing a pool bottom-up from the hiring plan is far more defensible than picking a round number. The buffer matters because pools also fund retention refreshes, not just new hires.

Why does Option Pool matter?

A pool sized without a buffer runs out mid-cycle, and topping it up between rounds means another dilution conversation with the board.

What values do I need to enter?

This calculator takes 6 inputs: Senior hires planned, Equity per senior hire, Mid-level hires planned, Equity per mid-level hire, Junior hires planned, Equity per junior hire. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.