First Hire Calculator
Calculate your startup's readiness for its first employee based on runway, revenue, and workload.
Financial Information
Revenue & CashLast round valuation or estimated current value
Hire Details
Role & SalarySoftware engineers, developers, technical leads
Time founders spend weekly on tasks this hire could take over
Ready to Hire Score
Overall AssessmentReadiness Score
71/100
Consider hiring in 3 months
Runway Impact
Before vs After HireCurrent Runway
20 mo
After Hire
12 mo
Impact: -8 months (40% reduction)
Break-even Revenue
Revenue Needed to Sustain Hire
$20K/mo
You need to increase revenue by $10K/mo(100%) to break even on this hire.
Recommended Equity
Employee #1-5 RangeEquity Range
0.65% - 2.60%
4-year vesting with 1-year cliff
Low Range Value
$13K
High Range Value
$52K
Value based on $2.0M valuation
Equity value is notional until exit. Actual value depends on company performance and exit outcome.
Total Compensation
Annual Total Comp (Year 1)
$123K - $133K
Key Insights
Good runway position - you have 12+ months after this hire.
Strong workload case - 20 hrs/week can be freed up for strategic work.
For a Engineering role, equity at 1.63% is competitive for employee #1-5.
This calculator provides general guidance based on industry benchmarks. Actual hiring decisions should consider your specific circumstances, market conditions, and legal requirements. Consult with HR and legal advisors for personalized guidance on compensation and equity grants.
Want to learn more?
Learn when to make your first hire, how much equity to offer early employees, and best practices for startup compensation with our comprehensive hiring guide.
Read the complete guide