What Is Your
Equity Worth?
Don't accept an offer without understanding the real value. Calculate what your stock options could actually be worth—and when they might be worth nothing.
Questions You Should Be Asking
Before accepting any offer with equity
What are my options worth if the company exits?
Use the equity calculator to model different exit scenarios and see your potential payout after dilution and taxes.
Calculate NowHow much will my ownership be diluted?
Companies raise multiple rounds. Each round dilutes your percentage. The dilution simulator shows the real impact.
Calculate NowWhat's my true hourly rate including equity?
Equity value is uncertain. The hourly rate calculator helps you understand your total compensation package.
Calculate NowShould I exercise my options?
This depends on strike price, 409A valuation, your cash situation, and tax implications. Our tools help model the scenarios.
Calculate NowTerms You Need to Know
The vocabulary of startup equity
Stock Options
The right to buy shares at a set price (strike price). You pay the strike price to get actual shares.
Strike Price
The price you pay to exercise options. Set by 409A valuation. Lower = more valuable options.
Vesting
How you earn equity over time. Standard: 4 years with 1-year cliff (nothing until month 12, then monthly).
Cliff
Period before any equity vests. Usually 1 year. If you leave before the cliff, you get nothing.
Fully Diluted Shares
Total shares including all options and future issuances. Your real ownership denominator.
Liquidation Preference
Investors get paid first in an exit. This can reduce or eliminate your payout in smaller exits.
Offer Red Flags & Green Flags
Red Flags
- ✗No clear answer on total shares outstanding
- ✗Unusually long cliff (>1 year)
- ✗Non-standard vesting (>4 years)
- ✗Very high strike price relative to last round
- ✗No 409A valuation available
- ✗Excessive liquidation preferences
Green Flags
- ✓Clear cap table breakdown provided
- ✓Standard 4-year vest, 1-year cliff
- ✓Recent 409A valuation available
- ✓Willing to discuss exit scenarios
- ✓Reasonable strike price
- ✓1x non-participating liquidation preference
The Hard Truth About Startup Equity
Most startup equity ends up worth $0. Companies fail, exits happen below liquidation preferences, or you leave before vesting.
This doesn't mean you shouldn't take equity—it means you should understand what you're getting and not discount cash salary too heavily.
Rule of thumb: Value equity at 10-20% of its “paper value” when comparing offers. If the equity doesn't make sense at that discount, the offer probably doesn't work.
Calculate Before You Decide
Run the numbers on your offer. Know what you're signing up for.
Start Calculating