STARTUP EQUITY CALCULATOR

Equity Allocation
Made Simple

Calculates fair equity splits using time, risk, and value-added contribution metrics

Allows custom vesting schedules with cliff options to protect long-term commitments

Flags potential equity imbalances to help avoid founder disputes and future conflicts

Founder Details

The calculator lets you decide how important different contributions should be in determining equity splits. Adjust the sliders below to match what matters most for your business.

Calculation Weights

30%
30%
30%
10%

Vesting Options

Equity Split Results

4-year vesting with 12-month cliff

Total Equity Pool 100%
Total Allocated 100%

Equity Analysis

Risk Assessment

Low Risk

Vesting Schedule

Guide to Startup Equity Splits

Allocate equity fairly among co-founders based on roles, risks, and contributions.

What is an Equity Split?

  • It defines how much ownership each founder holds in a startup.
  • Fair division of equity builds trust and prevents future conflicts.
  • Factors like time, idea, capital, risk, and responsibilities are considered.

Who Needs an Equity Split?

  • Early-stage startups with two or more co-founders.
  • Teams planning to formalize their ownership and roles.
  • Essential before raising funds, granting ESOPs, or registering a company.

How is Equity Split Calculated?

  • Total equity is divided based on weighted parameters: idea, effort, time, capital, experience, etc.
  • Our calculator assigns scores and recommends a fair percentage split.
  • Fully customizable and suited for all types of founder arrangements.

Key Metrics Used in Equity Splitting

  • Capital Contribution: Funds invested by each founder
  • Time Commitment: Full-time vs. part-time roles
  • Idea Origination: Ownership of the original concept
  • Risk Taken: Opportunity cost or financial risk incurred

Benefits of Using the Equity Split Calculator

  • Objective and data-driven ownership suggestions.
  • Promotes transparency and avoids disputes.
  • Customizable weights to suit unique startup dynamics.
  • Ideal for founders, accelerators, and incubators.

Documents Needed for Equity Agreement

  • Founders’ full names and roles
  • Startup idea description and contributions
  • Time and financial commitments
  • Draft founders’ agreement (optional)

Some common questions
were often asked

What is a startup equity split?

It refers to how ownership in a startup is divided among co-founders, based on contributions, risk, and roles.

Why is a fair equity split important?

A fair split prevents disputes, aligns team incentives, and builds long-term trust among co-founders.

When should we decide the equity split?

It's best to decide early—ideally before incorporation or raising funds—to avoid conflicts later.

What factors affect equity allocation?

Key factors include time commitment, idea ownership, capital invested, domain expertise, and risk taken.

Can we change the equity split later?

Yes, but it may require legal agreements and consensus. Early clarity helps avoid the need for changes.

How does the calculator help?

It simplifies decision-making by factoring in contributions, roles, and expectations to suggest a fair split.