Startup Tools
Calculate fair equity distribution among co-founders based on contribution, time, and risk.
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Learn the fundamentals of fair equity distribution
Determining fair startup equity distribution among co-founders is one of the most critical decisions in building a successful company. Our free startup equity calculator helps entrepreneurs split equity fairly based on contribution, time commitment, capital investment, and risk factors.
Startup equity represents ownership in your company and determines how profits, control, and exit proceeds are shared among founders. Poor equity decisions can lead to founder disputes, legal issues, and company failure. Studies show that 65% of startups fail due to co-founder conflicts, often stemming from unfair equity distribution.
Our equity calculator uses a proven methodology that considers four key factors:
Many startups make critical errors when dividing equity among co-founders:
Vesting schedules ensure founders earn their equity over time, typically 4 years with a 1-year cliff. This protects the company if a founder leaves early and ensures long-term commitment. Without vesting, a departing founder could retain significant equity while contributing nothing to future success.
Proper legal documentation is essential for startup equity distribution. Key documents include:
Calculate fair startup equity splits instantly with our proven algorithm. No signup required, 100% free forever.
Based on proven legal frameworks and best practices used by successful startups and venture capitalists.
Generate detailed equity distribution reports perfect for legal documentation and investor presentations.
Get your equity distribution calculated in under 2 minutes with real-time updates as you input founder information.
Properly account for different risk levels taken by each founder, ensuring fair compensation for higher risk.
Support for 1-5 co-founders with detailed breakdown of each founder's contribution and equity share.
Tech startups typically allocate 15-25% equity to technical co-founders (CTO), 20-30% to CEO, and 10-20% to other co-founders. Technical expertise is highly valued, especially in software and AI companies.
Service startups often have more equal distributions among co-founders, with emphasis on business development and client relationships. Capital requirements are typically lower than tech startups.
Join thousands of entrepreneurs who have used our free equity calculator to build fair and successful founding teams.