Equity Compensation Calculator
Equity Calculator
What’s the current and future value of your startup equity?
Equity compensation at startups offers valuable ownership opportunities but can be complex. Understand the different types and calculate their financial impact on your future.
Your equity
- Stock options
- Percentage of options vested
- Strike price
- Total company shares
- Company current value
- Hypothetical exit value
- Additional rounds of funding
- Dilution per round
| Detail | Value |
|---|---|
| Total Future Equity Value* | $2,560,000 |
| Future vested shares | 20,000 |
| Future percentage ownership | 0.051% |
| Cost to exercise all shares | $12,000.00 |
| Future equity value post-exercise* | $2,548,000.00 |
| Current Equity Value* | $100,000 |
| Vested shares | 10,000 |
| Your initial percentage ownership | 0.1% |
| Current cost to exercise | $6,000.00 |
| Current equity value post-exercise* | $94,000.00 |
*Content is meant for informational purposes only. This should not be construed as solicitation or recommendation of any investment or investment strategy.
Equity Compensation Types
Equity compensation offers wealth-building potential beyond your salary. These ownership stakes align your success with company growth, providing unique tax advantages and potentially higher returns than traditional investments—especially in high-growth companies.
Types of Equity Compensation: A Quick Guide
Restricted Stock Units (RSUs)
- Shares of company stock granted to employees that vest over time.
- No purchase required—you simply receive the shares when they vest.
- Common at larger firms and well-funded startups valued over $1 billion.
- A portion of shares is typically withheld for taxes at vesting.
- Most straightforward form of equity compensation.
Incentive Stock Options (ISOs)
- Rights to purchase company shares at a fixed price (strike price).
- Must be exercised to convert into actual shares.
- Have specific holding requirements for tax advantages.
- Must be exercised within 3 months post-termination.
Non-Qualified Stock Options (NSOs)
- Similar to ISOs but available to contractors, consultants, and board members.
- Must be exercised to convert into actual shares.
- More flexible than ISOs but without the preferential tax treatment.
Employee Stock Purchase Plans (ESPPs)
- Programs allowing employees to buy company stock at a discount.
- Funded through regular payroll deductions (post-tax).
- Typically offer 10-15% discounts on market price.
- Often include a "look-back" provision using the lower price between offering start and purchase date.
- Annual contribution limit of $25,000.
Your equity package could be life-changing.
While our calculator is meant to give you a general idea of what your equity compensation could be worth, the truth is that these things are a lot more complicated and warrant more attention than it can provide. Not all advisors are equipped to competently handle equity comp conversations—and these could have serious tax implications, so it’s important to be proactive in planning.
Qualified Equity Compensation Associates.
Range has qualified advisors ready to handle any upcoming equity events or questions you may have. We can help you understand how much to buy, sell, and execute—and when to do so—in order to maximize cash in your pocket, minimize tax impact, and reduce your investment risk.
Ready to get started?
If you have a potential liquidity event upcoming, work for a company ready to IPO, are thinking of executing your ISOs, or selling your own company, it’s important to speak to an advisor ASAP. These situations can have huge implications on your taxes and our team is here to help.