Sweat Equity Calculator

Calculate fair equity based on your contribution, foregone salary, and risk level.

Your Role

Role & Hours

CTO/Lead Engineer building the product

hrs/week
months

Compensation

Salary Details
$/year

What you would earn at a comparable company

$/year

Enter 0 if working for equity only

Company Details

Stage & Valuation

Building MVP, pre-revenue

$

Current or expected valuation

Suggested Equity

Based on your inputs

Suggested Equity Stake

45.0%

above typical range for Technical Co-founder

Foregone Salary

$360K

over 24 months

Current Value

$900K

at current valuation

Risk Multiplier Applied

2.5x

Pre-seed stage: higher risk = higher equity

Break-Even Exit Valuation

$800K

Where your equity = foregone salary

Equity vs Cash

Comparison at current valuation
Your equity is worth more than your foregone salary at current valuation

Your Equity Stake

Exit Scenarios

What your equity could be worth
3x+650% ROI
5x+1150% ROI
10x+2400% ROI
20x (Unicorn)+4900% ROI

Typical Equity Ranges

Technical Co-founder15.0% - 35%
Business Co-founder15.0% - 30%
Advisor0.3% - 2%
Early Employee0.5% - 3%

Key Insights

Your calculated equity (45.0%) is above the typical range for Technical Co-founder. Consider negotiating or adjusting expectations.

With a 4-year vesting schedule and 1-year cliff, you'd vest 11.2% after year one, then 0.938% monthly.

Your monthly foregone salary is $15K. Ensure you can sustain this for 24 months.

This calculator provides general guidance for sweat equity negotiations. Actual equity grants depend on many factors including negotiation, company circumstances, and legal considerations. Always consult with legal and financial advisors before finalizing equity agreements.

Want to learn more?

Understand the fundamentals of sweat equity, including how to calculate fair equity for co-founders, advisors, and early employees based on their contributions.

Read the complete guide