Equity Compensation Calculator
Calculate the value of equity grants, stock options, and RSUs. See total compensation including vesting schedules and exit probability.
Enter Your Values
Using shared profile · 3,500/mo · EUR — edit on Dashboard
Results update automatically as you change values.
What-If Scenarios
Results update instantlyCost Breakdown
Compensation Breakdown
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Equity Value Over Vesting
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Side-by-Side Comparison
Bars show relative size · ✓ marks the better option- Base Salary
- €3,500
- Equity Grant (shares)
- 0
- Strike Price
- —
- Current Valuation/Share
- —
- Equity Value at Vest
- €0
- Total Annual Comp
- €2,450
- Base Salary
- €3,500
- Equity Grant (shares)
- 10,000
- Strike Price
- €1.00
- Current Valuation/Share
- €2.00
- Equity Value at Vest
- €31,063
- Total Annual Comp
- €10,216
| Factor | Cash-Only Offer | Recommended Equity Package |
|---|---|---|
| Base Salary | €3,500 | €3,500 |
| Equity Grant (shares) | 0 | 10,000 |
| Strike Price | — | €1.00 |
| Current Valuation/Share | — | €2.00 |
| Equity Value at Vest | €0 | €31,063 |
| Total Annual Comp | €2,450 | €10,216 |
Equity grant of 10,000 shares at €1 strike, current €2/share, growing 25%/yr over 4 years = €31063 after tax (€7766/yr). At 40% exit probability, expected value is €12425. Total comp: €10216/yr vs €2450 cash-only.
Scenario Analysis
How the outcome shifts if your assumptions turn out better or worse than expected.
3× valuation growth
25% growth
Equity worth zero
Compare Scenarios
Pin up to 3 and see them side by sideSet your inputs, then Pin current to save this scenario. Pin a few variations to compare their scores and outcomes here.
What Moves the Needle Most
How much each factor changes your Total Comp (incl. equity) across its full range. Valuation/Share has the biggest impact.
Focus your attention on Valuation/Share — getting it right matters most. Factors lower down move the result less, so rough estimates there are fine.
Confidence & Assumptions
The result swings widely between best and worst cases — it depends heavily on assumptions that are hard to predict.
Equity Value: €0 (worst) → €31,063 (expected) → €40,000 (best)
These are the estimates the result depends on. Adjust them (and the Advanced inputs) to match your real situation — the closer they are to reality, the more reliable your decision.
These estimates are for informational purposes only and do not constitute financial advice. Actual results may vary based on factors not captured in this calculator.
How This Calculator Works
What this calculator does
This calculator estimates the value of equity compensation (stock options, RSUs, or shares) added to base salary, accounting for vesting, growth projections, taxes, and exit probability.
How the calculation works
We calculate the spread per share (valuation minus strike price), multiply by grant size, project growth over the vesting period, apply capital gains tax, and discount by exit probability for expected value.
Formula
Spread = max(Valuation - Strike, 0) Equity Value = Shares × Spread × (1 + Growth)^Vest Years After Tax = Equity Value × (1 - CGT) Expected = After Tax × Exit Probability
Example
10,000 shares at €1 strike, €2 current, 25% growth over 4 years: spread grows to €3.05/share = €30,500 gross. After 20% CGT and 40% exit probability, expected value ≈ €9,760.
How to Use This Calculator
- 1Enter your numbers
Fill in the inputs for Equity Compensation Calculator. Defaults are realistic starting points — replace them with your actual figures.
- 2Understand the calculation
We calculate the spread per share (valuation minus strike price), multiply by grant size, project growth over the vesting period, apply capital gains tax, and discount by exit probability for expected value.
- 3Review results and scenarios
Check metrics, cost breakdown, comparison tables, and best / expected / worst scenarios. Use sliders to stress-test assumptions.
- 4Decide with the verdict
Read the decision engine recommendation and FAQ. Example: 10,000 shares at €1 strike, €2 current, 25% growth over 4 years: spread grows to €3.05/share = €30,500 gross. After 20% CGT and 40% exit probability, expected value ≈ €9,760.
Factors to Consider
- Equity is illiquid until exit, IPO, or secondary sale
- Future funding rounds dilute your stake by 15-25%
- Standard 4-year vest with 1-year cliff — leave early, get nothing
- Capital gains vs income tax treatment varies by country
- Base salary must cover living costs — equity is upside, not guaranteed
Common Mistakes
- Valuing equity at the latest funding round price without discounting
- Ignoring dilution from future funding rounds
- Forgetting the 1-year cliff — no equity if you leave early
- Treating paper gains as real money before a liquidity event
Frequently Asked Questions
How much equity is a fair offer?+
Early employees (first 20) might get 0.1-1%+. Later hires get 0.01-0.1%. The value depends on company valuation and exit probability. Use this calculator to compare against a higher cash offer.
Should I take a lower salary for equity?+
Only if base salary covers your needs and the expected equity value (discounted by exit probability) exceeds the cash difference. Never take a salary you cannot live on for speculative equity.
This calculator provides estimates for informational purposes only and does not constitute financial, investment, tax, or legal advice. Always consult a qualified professional before making important financial decisions.
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