Sweat Equity Calculator
Calculate fair equity based on your contribution, foregone salary, and risk level.
Your Role
Role & HoursCTO/Lead Engineer building the product
Compensation
Salary DetailsWhat you would earn at a comparable company
Enter 0 if working for equity only
Company Details
Stage & ValuationBuilding MVP, pre-revenue
Current or expected valuation
Suggested Equity
Based on your inputsSuggested 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 valuationYour Equity Stake
Exit Scenarios
What your equity could be worthTypical Equity Ranges
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