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Founder Equity Split Calculator

Calculate fair equity distribution based on contributions

Co-founders

Idea (1-10)

Execution (1-10)

Hustle/Sales (1-10)

Domain Expertise (1-10)

Commitment Level (1-10)

Capital Contribution (1-10)

Idea (1-10)

Execution (1-10)

Hustle/Sales (1-10)

Domain Expertise (1-10)

Commitment Level (1-10)

Capital Contribution (1-10)

Recommended Equity Split

Founder 1

50.0%

Founder 2

50.0%

Option Pool (Recommended)

10-15%

Vesting Schedule

4 years, 1yr cliff

Tips for Equity Discussions

•Have the conversation early - it only gets harder later
•Equal splits (50/50) can work but require strong alignment
•Always use vesting to protect against early departures
•Reserve 10-20% for employee option pool

What is Founder Equity Split Calculator?

Equity split determines how ownership of the company is divided among co-founders. It considers factors like idea origination, full-time commitment, domain expertise, capital contribution, CEO role, and technical execution to arrive at a fair percentage allocation.

How to use this calculator

1Add each co-founder and rate them on each dimension: idea origination, commitment, expertise, capital, leadership, and execution.
2Adjust the weight of each dimension to reflect what matters most for your specific company.
3Review the suggested equity percentages for each co-founder.
4Compare the calculator's output against your gut sense of fairness and adjust as needed.
5Once agreed, structure the split with a 4-year vesting schedule and 1-year cliff before formalizing.

Why this matters for founders

Co-founder equity disputes are a top-3 reason startups fail. Getting this right early -- with vesting schedules attached -- prevents devastating conflicts later. An unfair split breeds resentment; an equal split with unequal contributions does the same.

How to read the results

•Equal splits (50/50) are common but not always fair -- they should only be used when contributions are genuinely equal across all dimensions.
•Always attach a 4-year vesting schedule with a 1-year cliff to all founder equity, even sole founders, to protect the company.
•The split should reflect future expected contributions, not just past work -- who will be full-time, who brings irreplaceable skills, who takes more risk.
•Revisit the split before external funding; once investors are involved, restructuring equity becomes far more complex.

Industry benchmarks

YC data shows roughly 75% of funded startups have co-founders with near-equal splits (within 10% of each other). Standard vesting is 4 years with a 1-year cliff. Solo founders typically retain 100% pre-dilution but may set aside 10-15% for an employee option pool.

Key terminology

🤝Equity Split 💧Equity Dilution